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1 0 - 5 : Constant Growth Stocks Valuation of a constant growth stock A stock is expected to pay a dividend of $ 1

10-5: Constant Growth Stocks
Valuation of a constant growth stock
A stock is expected to pay a dividend of $1.50 the end of the year (that is,D1=$1.50), and it should continue to grow at a constant rate of 7% a year. If its required return is 13%, what is the stock's expected price 5 years from today? Round your answer to two decimal places.
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