What is its value if the previous dividend

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Reference no: EM13769127

Valuation of a constant growth stock

Investors require a 15% rate of return on Levine Company's stock (that is, rs = 15%).

What is its value if the previous dividend was D0 = $2.25 and investors expect dividends to grow at a constant annual rate of (1) -3%, (2) 0%, (3) 3%, or (4) 13%? Round answers to the nearest hundredth.

(1) $

(2) $

(3) $

(4) $

Reference no: EM13769127

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