Maintain constant growth rate

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Wesen Corp. will pay a dividend of $4.40 next year. The company has stated that it will maintain a constant growth rate of 5 percent a year forever.

If you want a return of 17 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $ If you want a return of 10 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $

Reference no: EM131307976

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Maintain constant growth rate : Wesen Corp. will pay a dividend of $4.40 next year. The company has stated that it will maintain a constant growth rate of 5 percent a year forever. If you want a return of 17 percent, how much will you pay for the stock?

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