Describe the dividend valuation model


Response to the following problem:

The Grow-all Company has 1,000,000 shares of common stock outstanding. The company paid dividends of $6,000,000 on common stock this year. Dividends are expected to grow at a rate of 4% per year and the required rate of return on common stock is 7%.

Using the dividend valuation model, what is the value of a share of Growall common stock?

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Financial Accounting: Describe the dividend valuation model
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