Company a just paid a dividend of 5 on its common stock


Question: Company A just paid a dividend of $5 on its common stock. Dividends are expected to grow at 5%. Investors have historically required a return of 11% on the common stock. However, recent sentiment has shifted and investors now require a return of 15% on Company A's common stock. What is the estimated value of the common stock? The estimated value of the stock is $. (Round to the nearest cent.)

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Finance Basics: Company a just paid a dividend of 5 on its common stock
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