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Pine crest Holdings just paid a dividend of $0.45. The dividend is expected to grow at an annual rate of 5% forever. If the required return is 9%, what is the fair value of this share today?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 1P: Thress Industries just paid a dividend of 1.50 a share (i.e., D0 = 1.50). The dividend is expected...

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Question

What is the fair value of this share today on these financial accounting question?

Pine crest Holdings just paid a dividend of $0.45. The dividend is
expected to grow at an annual rate of 5% forever. If the required
return is 9%, what is the fair value of this share today?

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