Percent growth rate in dividends


Lohn Corporation is expected to pay the following dividends over the next four years: $19, $15, $14, and $5.50. Afterward, the company pledges to maintain a constant 3 percent growth rate in dividends forever. If the required return on the stock is 10 percent, what is the current share price? (Round your answer to 2 decimal places).

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Finance Basics: Percent growth rate in dividends
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