Investors require a 16 percent return from investments such


The Brigapenski Co. has just paid a cash dividend of $2 per share. Investors require a 16 percent return from investments such as this. If the dividend is expected to grow at a steady 8 percent per year, what is the current value of the stock? What will the stock be worth in five years?

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Finance Basics: Investors require a 16 percent return from investments such
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