Cisco System's growth has slowed to a constant rate during the past few years. As a result, the  company expects its common stock dividend to grow at a constant 5 percent for the remainder of   the company's life. Today, Cisco paid common stockholders a $3 dividend. If the required rate  of return on the company's stock is 8%, what is the fair value of the stock today?  

 

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Lets solve this using the constant growth dividend discount model Current dividend D0 3 Ex... View the full answer