Analyzing common stock, You are analyzing a common stock

Analyzing common stock

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Reference no: EM132034322

You are analyzing a common stock that is expected to pay a dividend of $0.80 per share next year. After that, you expect the stock’s earnings and dividends to grow at an annual rate of 14 percent for two years, then slow to a constant rate of 8 percent. What is the value of this stock if the appropriate required rate of return is 12%?

Reference no: EM132034322

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