Current share price of far side corporation


Problem:

Far Side Corporation is expected to pay the following dividends over the next four years: $13, $8, $6, and $4. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever.

Required:

Question: If the required return on the stock is 13 percent, what is the current share price?

Note: Explain all steps comprehensively.

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Accounting Basics: Current share price of far side corporation
Reference No:- TGS0888115

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