Tower industries expects to pay a dividend

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Tower Industries expects to pay a dividend of $2.40 at the end of year 1. Dividends will grow by 25% each year until year 4. After year 4, the firm expects a constant growth rate of 5%. If investors require 12%, what is the current share price?

Reference no: EM131133175

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Tower industries expects to pay a dividend : Tower Industries expects to pay a dividend of $2.40 at the end of year 1. Dividends will grow by 25% each year until year 4. After year 4, the firm expects a constant growth rate of 5%. If investors require 12%, what is the current share price?
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