Constant growth stock valuation

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Reference no: EM131511556

Constant Growth Stock Valuation

Investors require a 16% rate of return on Brooks Sisters' stock (rs = 16%).

What would the value of Brooks's stock be if the previous dividend was D0 = $3.25 and if investors expect dividends to grow at a constant compound annual rate of (1) - 5%, (2) 0%, (3) 7%, or (4) 13%? Round your answers to the nearest cent.

1)_______$

2)________$

3)________$

4)________$

Reference no: EM131511556

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