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What if the annual dividend growth rate is expected

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Question 1: Burp-Cola Company just finished making an annual dividend payment of $2 per share on its common stock. Its common stock dividend has been growing at an annual rate of 10%. Kelly Scott requires a 16 percent annual return on this stock. What intrinsic value should Kelly place on one share of Burp-Cola common stock. If dividends are expected to continue growing at a constant 10% annual rate. What if the annual dividend growth rate is expected to decrease to 9%?

Reference no: EM132566414

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