Fast Growth Company just paid a dividend of $2 .15 per share. Dividends are expected to grow

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Fast Growth Company just paid a dividend of $2 .15 per share. Dividends are expected to grow at a constant rate of 18% per year. If you require a 20 percent return on stocks in this risk class.

What isthe value of the stock?

Related Book For answer-question

Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: May 16, 2023 03:18 AM

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Fast Growth Company just paid a dividend of $2 .15 per share. Dividends are expected to grow

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Expert Answer:

To calculate the value of the stock we can use the Gordon Growth Model also known as the Divid... View the full answer

Corporate Finance Core Principles And Applications

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