Suppose you expect next years per-share dividend on shares


Suppose you expect next year's per-share dividend on shares of the Newington Co. to be 48.00. These dividends are expected to grow at 6% for the next 4 years. At the end of the four years, you expect the stock to grow at an annual rate of 3% indefinitely. If your required rate of return is 10% what is a share of Newington Co. stock worth to you today?

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Financial Management: Suppose you expect next years per-share dividend on shares
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