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Common Stock of Coquihalla Corporation

Common Stock of Coquihalla Corporation will pay a dividend of $8.00 in the upcoming year, and dividends are expected to grow 5% per year in the future. Your required rate of annual return is 12% . Using the Constant Dividend Growth Model calculate the current price of the Common Stock.

Solution Summary

This solution calculates the current price of the Common Stock of Coquihalla Corporation using the dividend growth model.

$2.19