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Electonic Industries is expected to pay the following dividends over the next four years: $4, $8,
$11, and $15. Afterward, the company pledges to maintain a constant 5 percent growth rate in
dividends forever. If the required return on the stock is 13 percent, what is the current share price?
(Do not round your intermediate calculations.)
Question 3 options:
$142.95
$151.80
$154.74
$147.38
$132.43
$142.95
$151.80
$154.74
$147.38
$132.43

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Electonic Industries is expected to pay the following divide.pdf

  • 1. Electonic Industries is expected to pay the following dividends over the next four years: $4, $8, $11, and $15. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 13 percent, what is the current share price? (Do not round your intermediate calculations.) Question 3 options: $142.95 $151.80 $154.74 $147.38 $132.43 $142.95 $151.80 $154.74 $147.38 $132.43