Question: SA Inc. is expected to pay a $0.80 per share dividend at the end of the year (that is, =$0.80). The dividend is expected to

SA Inc. is expected to pay a $0.80 per share dividend at the end of the year (that

is, =$0.80). The dividend is expected to grow at a constant rate of 5% a year. The

require rate of return on the stock, , is 10%. What should be the stocks current value

per share?

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