What value would you place on a share of van buren stock

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Problem

Van Buren, Inc., currently pays $2.15 per share in dividends on its common stock. Dividends are expected to grow at 5.00% per year forever.

If you require a 13.00% rate of return (i.e., the discount rate) on this investment, what value would you place on a share of Van Buren common stock? Assume that the current dividend was just paid.

Reference no: EM132048407

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