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    Lawrence Industries Market value

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    Lawrence Industries' most recent annual dividend was $1.80 per share (D0 = $1.80), and the firm's required return is 11%. Find the market value of Lawrence's shares when:

    a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5%
    constant annual growth rate in years 4 to infinity.
    b. Dividends are expected to grow at 8% annually for 3 years, followed by a 0%
    constant annual growth rate in years 4 to infinity.
    c. Dividends are expected to grow at 8% annually for 3 years, followed by a 10%
    constant annual growth rate in years 4 to infinity.

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    Solution Preview

    a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.

    ...

    Solution Summary

    In the solution, Lawrence Industries Market value is determined. The dividends and expected growth annually is calculated and given in an excel sheet.

    $2.19