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A company's stock is currently worth $88.41 per share. The company just paid a …

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Wize University Introduction to Finance Textbook > Equity Valuation

Common Shares (Constant Growth) - Gordon Growth Model

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A company's stock is currently worth $88.41 per share. The company just paid a dividend and expects to increase it by 7% per year indefinitely. The risk premium on the stock is 12.5% and the risk free rate is 5%. What is the amount of the dividend that was just paid?
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