Constant growth valuation

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Reference no: EM131532901

CONSTANT GROWTH VALUATION Thomas Brothers is expected to pay a $0.45 per share dividend at the end of the year (that is, D1 = $0.45). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 14%. What is the stock’s current value per share? Round to TWO decimal places.

Reference no: EM131532901

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