Computation of current value of shares of a stock

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Reference no: EM139613

Calculation of current value of shares of a stock under given dividend growth rate.

Over the past 5 years, the dividends of the Gamma Corporation have grown from $0.70 per share to the current level of $1.30 per share (D0). This growth rate is expected to continue for the foreseeable future. What is the value of a share of Gamma Corp. common stock to an investor who requires a 20% return on an investment?

Reference no: EM139613

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