Farmers Co. just paid a dividend of $0.85 on its ordinary shares. Due to the release of an exciting new product, this company's dividends are expected to grow at a constant rate of 5 percent per annum...

Farmers Co. just paid a dividend of $0.85 on its ordinary shares. Due to the release of an exciting new product, this company's dividends are expected to grow at a constant rate of 5 percent per annum indefinitely. If shareholders require a rate of return of 12 percent, what is the current value of each share?
1. $11.80
2. $25.09
3. $12.75
4. $5.63

Jun 10, 2022

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