low into a spreadsheet.) Dividend expected next year $1.05 Dividend growth rate 8.7% Required return 12.7% ue of the firm's stock is $, (Round to the nearest cent)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 5MC
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please help me analyze and asnwer the questions with formula so that i can learn and get ready for my exam :<

Common stock value-Constant growth Use the constant-growth model (Gordon growth model) to find the value of the firm shown in the following table: (Click on the icon here a in order to copy the contents of the data
table below into a spreadsheet.)
Dividend expected next
year
Dividend growth rate Required return
$1.05
8.7%
12.7%
The value of the firm's stock is $. (Round to the nearest cent.)
Transcribed Image Text:Common stock value-Constant growth Use the constant-growth model (Gordon growth model) to find the value of the firm shown in the following table: (Click on the icon here a in order to copy the contents of the data table below into a spreadsheet.) Dividend expected next year Dividend growth rate Required return $1.05 8.7% 12.7% The value of the firm's stock is $. (Round to the nearest cent.)
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