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Constant growth valuation

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Constant growth valuation

Thomas Brothers is expected to pay a $2.5 per share dividend at the end of the year (that is, D1 = $2.5). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 10%. What is the stock's current value per share? Round your answer to two decimal places.

Reference no: EM131160912

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