A share of stock will pay a dividend of ($1.00) one year from now, with dividend growth
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A share of stock will pay a dividend of \($1.00\) one year from now, with dividend growth of 5 percent thereafter. In the context of a dividend discount model, the stock is correctly priced at \($10\) today. According to the constant dividend growth model, if the required return is 15 percent, what should the value of the stock two years from now?
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