Question: Analysts forecast that Dixie Chicks, Inc. ( DCI ) will pay a dividend of $ 4 . 0 0 a share now, continuing a long
Analysts forecast that Dixie Chicks, Inc. DCI will pay a dividend of $ a share now, continuing a longterm growth trend of per year. If This trend is expected to continue indefinitely, and investors' required rate of return for DCI is :
a What is the market value per share of DCI's common stock?
b What is the market value per share of DCI's common stock if required rate of return is
c If there is expected to be nonconstant growth of for the first year, then for the next year, then for next year, finally stabilizing to a constant growth of per year in the year what is the market value per share with the original required rate of return?
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