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Using the Dividend Valuation Model, calculate the following: What is the value of a common stock...

  1. Using the Dividend Valuation Model, calculate the following:

What is the value of a common stock that paid a $1.50 dividend at the end of the last year and is expected to pay a cash dividend in the future. Dividends are expected to grow at 7% annually and the investor’s required rate of return is 11%.

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