Determining common stock value-constant growth


Use the constant-growth model (Gordon growth model) to find the value of each firm shown in the following table.

Firm Dividend expected next year Dividend growth rate Required return

A $1.20 8% 13%

B 4 5 15

C 0.65 10 14

D 6 8 9

E 2.25 8 20

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Finance Basics: Determining common stock value-constant growth
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