5. A company's common stock paid a $2.13 dividend for the year just ended, and...
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5. A company's common stock paid a $2.13 dividend for the year just ended, and the dividend growth rate has been 48 for several years. The market or required rate of return on similar investments is 10 percent. Assume the P/E Ratio for similar companies is 12, and the company's Return on Equity is 27 percent. Its Earnings per Share is $4.26. Estimate the Price (P) or value per share using the Dividend Growth Model
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