Growth rate in dividends-what is the current share price

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Reference no: EM13878270

Lohn Corporation is expected to pay the following dividends over the next four years: $18, $14, $13, and $6.50. Afterwards, 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: EM13878270

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