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Question: Firm A just paid a dividend of $2.50 per share. This dividend is expected to grow at a rate of 18% over the next three years and then grow at a rate of 3% after that into the foreseeable future. If Firm A's cost of equity is 11 percent, estimate the intrinsic value of its common shares today.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92813148

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