Required if the required return on the stock is 15 percent


Far Up Corporation is expected to pay the following dividends over the next four years: $12, $10, $6, and $2. Afterward, the company pledges to maintain a constant 7 percent growth rate in dividends forever.

Required: If the required return on the stock is 15 percent, what is the current share price?

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Finance Basics: Required if the required return on the stock is 15 percent
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