Caroline Inc. currently pays a dividend of $2.70, and the companys dividend is expected to...
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Caroline Inc. currently pays a dividend of $2.70, and the companys dividend is expected to grow by 4% per year. The companys has the following costs of capital:
- Cost of equity capital = 9%
- Cost of debt capital = 6.5%
- Weighted average cost of capital = 8.25%.
Use the above information to calculate Carolines stock price using the dividend discount model.
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