Growth rate in dividends forever

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Reference no: EM13880232

Far Side Corporation is expected to pay the following dividends over the next four years: $12, $10, $6, and $3. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. Required: If the required return on the stock is 14 percent, what is the current share price?

Reference no: EM13880232


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