What is the share price in year six

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Reference no: EM132066470

Deja Brew Coffee Manufacturing Corporation is expected to pay the following dividends over the next six years: $5, $13, $18, $11, $21, and $3.45. Afterward, the company pledges to maintain a constant 7 percent growth rate in dividends, forever.

If the required return on the stock is 9%,

a) What is the share price in year 6, P₆?

b) What is the current share price, P₀?

Please use a timeline and show work to help explain process

Reference no: EM132066470

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