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Chapter 8Using the Dividend Growth ModelP0= D1/ (R – g)
Chapter 8The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. If investors require a 12 percent return on The Jackson-Timberlake Wardrobe Co. stock, the current price is $___ . The price will be $____ in 3 years and $____ in 15 years.