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  3. stock c is expected to pay a dividend of $5.80 nex

Stock C is expected to pay a dividend of $5.80 next year. Thereafter, dividend growth is...

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Finance

Stock C is expected to pay a dividend of $5.80 next year.Thereafter, dividend growth is expected to be 19.00% a year forfive years (i.e., years 2 through 6) and zero thereafter.

If the market capitalization rate for each stock is 9.00%, whatis the stock price for each of the stock C?

Answer & Explanation Solved by verified expert
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As per dividend discount model DDM the price of a stock is the sum of all of its future dividend payments discounted back to their present value or net    See Answer
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