Compute expected share price-using perpetual growth method

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Suppose the dividends for the Seger Corporation over the past six years were $1.19, $1.27, $1.36, $1.44, $1.54, and $1.59, respectively. Compute the expected share price at the end of 2014 using the perpetual growth method. Assume the market risk premium is 11.4 percent, Treasury bills yield 4.9 percent, and the projected beta of the firm is .89.

Reference no: EM131056284

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