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What is the market price of b

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Reference no: EM131696472

Two companies, A and B, are in the same risk class. Company A pays a constant dividend of $4 per year and is selling in the market for $35 per share. Company B just paid a dividend of $3.25 per share. If its dividends are growing at a constant rate of 8 percent per year, what is the market price of B?

Reference no: EM131696472

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