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Synovec Corporation is expected to pay the following dividends over the next four years: $6.10, $17.10, $22.10, and $3.90. Afterward, the company pledges to maintain a constant 5.25 percent growth rate in dividends forever. If the required return on the stock is 8 percent, what is the current share price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price

Synovec Corporation is expected to pay the following dividends over the next four years: $6.10, $17.10, $22.10, and $3.90. Afterward, the company pledges to maintain a constant 5.25 percent growth rate in dividends forever. If the required return on the stock is 8 percent, what is the current share price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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If the required return on the stock is 8 percent, what is the current share price?
Synovec Corporation is expected to pay the following dividends over the next four years: $6.10, $17.10, $22.10, and $3.90. Afterward, the company pledges to maintain a constant 5.25 percent growth rate in dividends forever. If the required return on the stock is 8 percent, what is the current share price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price
Transcribed Image Text:Synovec Corporation is expected to pay the following dividends over the next four years: $6.10, $17.10, $22.10, and $3.90. Afterward, the company pledges to maintain a constant 5.25 percent growth rate in dividends forever. If the required return on the stock is 8 percent, what is the current share price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price
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