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Common stock valueVariable growth Lawrence Industries' most recent annual dividend was $1.42
per share (D0)=1.42, and the firm's required return is 10%. Find the market value of Lawrence's
shares when dividends are expected to grow at 15% annually for 3 years, followed by a 6%
constant annual growth rate in years 4 to infinity.
The market value of Lawrence's shares is

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Common stock valueVariable growth Lawrence Industries most .pdf

  • 1. Common stock valueVariable growth Lawrence Industries' most recent annual dividend was $1.42 per share (D0)=1.42, and the firm's required return is 10%. Find the market value of Lawrence's shares when dividends are expected to grow at 15% annually for 3 years, followed by a 6% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is