Discussing the constant growth dividend model

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Question: The Black Forest Cake Company just paid an annual dividend of $9.28. If you expect a constant growth rate of 5.24 percent, and have a required rate of return of 9.40 percent, what is the current stock price according to the constant growth dividend model? Round the answer to two decimal places.

Reference no: EM131945883

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Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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