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Homework answers / question archive / Example 7
Example 7.2 Valuing a Firm with Constant Dividend Growth (1 of 4) Problem • Consolidated Edison, Inc. (Con Ed) is a regulated utility company that services the New York City area. Suppose Con Ed plans to pay $2.30 per share in dividends in the coming year. If its equity cost of capital is 7% and dividends are expected to grow by 2% per year in the future, estimate the value of Con Ed's stock.
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