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What is price-per-share

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Reference no: EM133072912

Suppose investors expect the yearly dividend paid by Fabian's Flowers Corp to be 5/share permanently (equal to its eps).

Assume the interest rate used by investors to discount these cash flows is 3% and the risk premium investors assign is 8.5%. Applying the Dividend Discount Model, what is price-per-share.

Reference no: EM133072912

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