What is the current price or value per share

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Reference no: EM131448343

1. A publicly traded firm just paid out a dividend (assume t=0 on the timeline) of $4/share, and it will continue to pay dividends forever.

a. What is the current price or value per share if its equity cost of capital is 10% per year and the dividends will increase or grow at a rate of 4.0%/year forever?

Reference no: EM131448343

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