Smashed Pumpkin Farms (SPF) just paid a dividend of $3.00 on its stock. The growth rate in

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Smashed Pumpkin Farms (SPF) just paid a dividend of $3.00 on its stock. The growth rate in dividends is expected to be a constant 7.5 percent per year, indefinitely. Investors require an 18 percent return on the stock for the first three years, a 12 percent return for the next three years, and then a 13 percent return, thereafter. What is the current share price for SPF stock?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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