What is the value of the firms common stock

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Can you explain the constant growth model and try to solve the following problem: A firm has experienced a constant annual rate of dividend growth of 9 percent on its common stock and expects the dividend per share in the coming year to be $2.70. The firm can earn 12 percent on similar risk involvements. What is the value of the firm's common stock?

Reference no: EM13872188

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