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KFA expects to pay the following dividends over the next 4 years: $3.00, $4.00, $5.00, and...

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Finance

KFA expects to pay the following dividends over the next 4years: $3.00, $4.00, $5.00, and $6.00. After that, it expects topay dividends that grow at 4%/year. If the required equity returnis 15%, what should be today's share price?

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Current market price today is present value of stock that is equal to present value of dividend received up to 4 Years and Price of stock received at end of    See Answer
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