Calculate the value of one share of the stock to an investor

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Finknautle, Inc. currently has the following sources of financing for its balance sheet. After analyzing each source of financing, answer the question associated with each.

Problem 1: An issue of common stock that paid a dividend yesterday of $2.40. Calculate the value of one share of this stock to an investor who requires a 10% rate of return and who forecasts that the company's dividends will grow at a constant annual rate of 4%

Reference no: EM132735161

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