Company pledges to maintain constant six percent growth rate

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Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $20, $15, $5.4 and $2.6. Afterwards, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 17 percent, what is the current share price?

Reference no: EM131563010

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