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Rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect...

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Finance

Rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only 6% a year and that each investor requires the same 12% expected return. The company will pay a dividend of $6.90 at the end of the first year. What value would an investor place on the stock? This is a chart.

Horizon (year).|PV (dividends) PV (terminal price)|value per share

1

2

3

10

Thank you!

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