You are trying to establish a value for the stock of a firm, Financial Management

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You are trying to establish a value for the stock of a firm

You are trying to establish a value for the stock of a firm that announced Earnings-per-Share of $4.37 for the recently completed fiscal year.

It seems plausible to assume that earnings will grow at about 1.75% per year into the future, and that 10.25% is a reasonable required return for the risk of this investment.

Apply the Gordon Growth Model to the EPS to estimate a realistic price for this stock.

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Financial Management: You are trying to establish a value for the stock of a firm

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Financial Management: You are trying to establish a value for the stock of a firm

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