What is the value of a stock if d0 2 what is the value of

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Reference no: EM13570681

The dividend-growth model may be used to value a stock:

V= D0(1+g)

k-g

a. What is the value of a stock if:

D0 = $2
k = 10%
g = 6%

b. What is the value of this stock if the dividend is increased to $3 and other variables remain constant?

Reference no: EM13570681

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