Use either valuation method for given firm

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Use the Gordon growth model or the Perpetuity Model, as applicable, to find the value of each firm as follows, or explain why you cannot use either valuation method for a given firm if neither can be used:

Firm                          Dividend this year            Dividend growth rate                       Required Return

A                                 $1.00                                         0%                                                                 15%

B                                 $2.00                                         9%                                                                 8%

C                                 $3.00                                         11%                                                              9%

D                                 $4.00                                         14%                                                              8%

E                                  $5.00                                         0%                                                                 10%

F                                  $0.00                                         0%                                                                 10%

Reference no: EM131594865

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