Sparkle jewlers expects to pay dividends per share of 060, Ask an Expert

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Sparkle Jewlers expects to pay dividends (per share) of $0.60, $0.90, $2.40, and $3.50 during the next four years.

Beginning in the fifth year, the dividend is expected to grow at a rate of 4 percent indefinitely.

If investors require a 20 percent return to purchase Sparkle's stock, what is the current value of the company's stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91990111

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