If you expect a constant growth rate of 482 percent and


Finance: Value of Common Stock, Expected Rate of return on Common Stock

Question

The Black Forest Cake Company just paid an annual dividend of $5.80. If you expect a constant growth rate of 4.82 percent, and have a required rate of return of 8.82 percent, what is the current stock price according to the constant growth dividend model?

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Finance Basics: If you expect a constant growth rate of 482 percent and
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