Company pledges to maintain constant growth rate in dividend

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Reference no: EM131875616

Far Side Corporation is expected to pay the following dividends over the next four years: $10, $9, $6, and $1. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever.

Required:

If the required return on the stock is 10 percent, what is the current share price? (Do not round your intermediate calculations.)

Reference no: EM131875616

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