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October 22, 2014

Homework Help: investing

Posted by Faye on Saturday, April 10, 2010 at 3:43pm.

(Dividend discount Model) Assume RHM is expected to pay a total cash dividend of $56.60 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%.

Thank you in advance for your response.

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