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Business, 18.12.2019 18:31 marvinsductant6710

Vandelay industries, a latex company, just paid $3.42 per share in annual dividends (ie. do = $3.42), and has historically grown that amount by 5% a year. what is the current value of the stock to an investor who requires an 11% return under each of the following scenarios

a) dividends continue to grow at the historical rate (i. e.5%)
b) the dividend growth rate is expected to permanently increase to 7%
c) the dividend growth rate is expected to permanently decrease to 3%

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