Constant four percent growth rate in dividends forever

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Reference no: EM131859861

South Side Corporation is expected to pay the following dividends over the next four years: $18, $14, $10, and $5.50. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price?

Reference no: EM131859861

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