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C Corporation net income this year is $800,000. The company generally retains 25% of net
income for reinvestment. The company's common stock currently has a book value of
$4,000,000. They just paid a dividend of $2.17, and the required rate of return on this stock is
11%. Compute the value of this stock if dividends are expected to continue growing indefinitely
at the company's sustainable growth rate.

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C Corporation net income this year is $800,000. The company generall.pdf

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