Apple Industries will pay a dividend of $2.50 per share this year. The dividend...

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Accounting

Apple Industries will pay a
dividend of $2.50 per share this year. The dividend
is expected to grow by 4% per year and assets of
this risk require a 12% return.
The value of each share should be
P0= $2.50/(.12.04)= $31.25
If the $2.50 dividend per share had just been paid
by the firm, what would be the share price?

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