Current market value of a share
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Assume RMH is expected to pay a total cash dividend of $5.60 next year and its dividends are expected to grow at a rate of 6% per year forever. Assuming annual dividend payments, what is the current market value of a share of RHM stock if the required return on RHM common stock is 10%?
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The solution explains how to calculate the current market value of a share
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The current market value is the present value of all dividends. Since the dividends grow ...
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