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How much should the share worth

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Question - Company B's share is trading at $43 per share. It has paid out a dividend of $3 per share recently and the expected dividend growth rate is 2% every year. Investors expect a minimum of 10% return every year from the company. According to the constant growth dividend discount model, how much should the share worth?

a. 43

b. 30

c. 38.25

d. 37.5

Reference no: EM132746994

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