Fair market value of a share of dvorak

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Dvorak Enterprises is expected to pay a stable dividend of $7 per share per year for the next 8 years. After that, investors anticipate that the dividends will grow at a constant rate of 3 percent per year indefinitely. If the required rate of return on this stock is 12 percent, what is the fair market value of a share of Dvorak?

Reference no: EM131970728

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