The company wishes to continue this dividend growth


The Erie Heating Company has been very successful in the past four years.

Over these years, it paid common stock dividend of $4 in the first year,

$4.20 in the second year,

$4.41 in the third year,

and its most recent dividend was $4.63.

The company wishes to continue this dividend growth indefinitely.

What is the value of the company's stock if the required rate of return is 12 percent.

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Financial Management: The company wishes to continue this dividend growth
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