A common stock will pay a cash dividend of $4 next year. After that, the dividends are expected to increase indefinitely at 2% per year. If the discount rate is 13%, what is the PV of the stream of dividend payments? (Round your answer to 2 decimal places.)

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A common stock will pay a cash dividend of $4 next year. After that, the dividends are expected to increase indefinitely at 2% per year. If the discount rate is 13%, what is the PV of the stream of dividend payments? (Round your answer to 2 decimal places.)

 

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