The foreman corporation earnings and common stock dividends, Ask an Expert

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The Foreman Company's earnings and common stock dividends have been growing at an annual rate of 6 percent over the past 10 years and are expected to continue growing at this rate for the foreseeable future. The firm currently (D0) pays an annual dividend of $5 per share. Determine the current value of a share of Foreman common stock to investors with each of the following required rates of return:

a. 12 percent
b. 14 percent
c. 16 percent
d. 6 percent
e. 4 percent

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