$2.00 Corporate Financial Management (A10)
(Dividend discount model) Assume RHM is expected to pay a total cash dividend of $5.60
next year and its dividends are expected to grow at a rate of 6% per year forever. Assuming
annual dividend payments, what is the current market value of a share of RHM stock if the
required return on RHM common stock is 10%?
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- Posted on Nov 01, 2010 at 10:14:30PM
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