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Far Side Corporation is expected to pay the following dividends over the next four years: $14....


Far Side Corporation is expected to pay the following dividends over the next four years: $14. $12. $7 and $4. Afterward, the
Far Side Corporation is expected to pay the following dividends over the next four years: $14. $12. $7 and $4. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. Required: If the required return on the stock is 12 percent, what is the current share price? (Do not round your intermediate calculations.)
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Year 1 2 3 Cash flows $14.00 $12.00 $7.00 $4.00 $60.00 pv @ 12% 0.8929 0.7972 0.7118 0.6355 0.6355 Present value $12.50 $9.57

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