P 7-9 xcl - P 7-9 Common stock value—Constant growth Use...

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Unformatted text preview: P 7-9 Common stock value—Constant growth Use the constant-growth model (Gordon model) to find the value of each firm shown in the following table. Firm Dividend expected next year Dividend growth rate Required return Firm Dividend expected next year Dividend growth rate Required Return A $1.20 8% 13% B $4.00 5 15 C 0.65 10 14 D 6.00 8 9 E 2.25 8 20 l (Gordon ...
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