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Compute the price of a common share

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Question - The Fleming Corporation paid a dividend of $2.00 last year. Over the next 12 months, the dividend is expected to grow at 10 percent, which is the constant growth rate for the firm. The new dividend after 12 months will represent D1. The required rate of return is 18 percent. Compute the price of a common share.

Reference no: EM133056183

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