What is the value per share of your firms stock

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Reference no: EM13731335

Assume the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 6%. Companies is about as risky as average firm in their industry, but have successfully expect to receive earnings and dividend growth at 50% (D1=Do(1+g)=Do(1.50) this year and 25% the following year, after which growth should return to 4%. Last dividend paid (Do) was $2.5, what is the value per share of your firms stock?

Reference no: EM13731335

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