Compute the value of dpc common stock

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Dalton Paper Corp. (DPC) is expected to pay an annual dividend of $3.80 to its common shareholders. Analysts expect these dividends to grow 7.5% per year indefinitely. Compute the value of DPC common stock assuming the required rate of return is (a) 10.0%; (b) 12%; and (c) 14%.

Reference no: EM131890934

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