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    Investments Analysis and Management
  4. Exam
    Exam 10: Common Stock Valuation
  5. Question
    ATEdwards Paid an Annual Dividend of $1
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ATEdwards Paid an Annual Dividend of $1

Question 1

Question 1

Essay

A.T.Edwards paid an annual dividend of $1.25 last year.Investors expect the dividends to grow at a rate of 6 percent per year over the foreseeable future.If the required rate of return for this stock is 12 percent,what is its intrinsic value today?

Correct Answer:

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