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California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share.

California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock.

1. What is the stock’s value?

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California Clinics.doc

California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per
share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and...

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