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2010-01-27_144114_wilshire - foreseeable future determine...

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Wilshire Company's earnings and common stock dividends have been growing at an annual rate of 4 percent over the past several years. The firm currently (t = 0) pays an annual dividend of $4.00. Assuming that Wilshire's common stock dividends continue growing at the past rate for the
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Unformatted text preview: foreseeable future, determine the value of the company's common stock to an investor who requires a 13 percent rate of return on these securities. a. $44.44 b. $36.81 c. $46.22 d. $48.62 P = $4.16/(0.13 - 0.04) = $46.22...
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