Common stock valuation–constant-growth perpetuity

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Common Stock Valuation – Constant-growth Perpetuity; DGM (3 points) XYZ, Inc. has a marginal cost of existing equity capital of 12% (= investors’ required rate of return). Its quarterly per share dividend this year of 46.729 cents is expected to grow next year, and every year thereafter by 7%. What should be the market price per share?

Reference no: EM131579703

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