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06-05-2024
Business

Answered

The investment banking firm of Einstein & Company will use a dividend valuation model to appraise the shares of the Modern Physics Corporation. Dividends (D1) at the end of the current year will be $1.30. The growth rate (g) is 9 percent and the discount rate (Ke) is 14 percent. What should be the price of the stock to the public?

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