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Dividend Discount Model - Value of Share

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Corporation A has just paid its annual dividend of $2.50 a share. This dividend is expected to grow at a rate of 5% annually forever, and the appropriate discount rate for a company with Company A's risk profile at 11%.

Use the dividend discount model to determine the value of a share of Polar Bear's stock.

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Corporation A has just paid its annual dividend of $2.50 a share. This dividend is expected to grow at a rate of 5% annually forever, and ...

Solution Summary

This solution helps with a question about the value of a share.

$2.19