What is the value of a share of common stock today


Problem

Suppose Nabisco Corporation just issued a dividend of $2.08 per share yesterday. Subsequent dividends will grow at a constant rate of 3.67% indefinitely. If the required rate of return for this stock is 15.14%, what is the value of a share of common stock today?

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Finance Basics: What is the value of a share of common stock today
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