Question: : Common stock valueVariable growth Lawrence Industries' most recent annual dividend was $2.88 per share (D0=$2.88) , and the firm's required return is 12%. Find

: Common stock valueVariable growth

Lawrence Industries' most recent annual dividend was $2.88 per share (D0=$2.88), and the firm's required return is 12%.

Find the market value of Lawrence's shares when:

a.Dividends are expected to grow at 7% annually for 3 years, followed by a 3% constant annual growth rate in years 4 to infinity.

b.Dividends are expected to grow at 7% annually for 3 years, followed by a 0% constant annual growth rate in years 4 to infinity.

c.Dividends are expected to grow at 7% annually for 3 years, followed by a 12% constant annual growth rate in years 4 to infinity.

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