Common stock value-Constant growth Use the constant-growth model (Gordon growth model) to find the value of the firm shown in the following table: (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Dividend expected next year $1.06 The value of the firm's stock is $ Dividend growth rate 7.3% (Round to the nearest cent.) Required return 11.9%

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 18MC
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Common stock value-Constant growth Use the constant-growth model (Gordon growth model) to find the value of
the firm shown in the following table: (Click on the icon here in order to copy the contents of the data table below
into a spreadsheet.)
Dividend expected next
year
$1.06
The value of the firm's stock is $
Dividend growth rate
7.3%
(Round to the nearest cent.)
Required return
11.9%
Transcribed Image Text:Common stock value-Constant growth Use the constant-growth model (Gordon growth model) to find the value of the firm shown in the following table: (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Dividend expected next year $1.06 The value of the firm's stock is $ Dividend growth rate 7.3% (Round to the nearest cent.) Required return 11.9%
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