What is its current stock price

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Common Stock Valuation

The last dividend paid by Marquette Inc. was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?

Also, with a current market stock price of $30.00 per share, what does this tell you as an existing investor (stockholder) in this company, and what does this tell the Chief Financial Officer of the company who is thinking about raising additional equity capital?

 

Reference no: EM13271643

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