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10. Sterling Corp. paid a dividend of $.40 last year. Over the next 12 months, the dividehd is expected to grow at 5 percent, which

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10. Sterling Corp. paid a dividend of $.40 last year. Over the next 12 months, the dividehd is expected to grow at 5 percent, which is the constant growth rate for the firm (s). The new dividend after 12 months will represent D. The required rate of return (K) is 7 percent. Compute the price of the stock (P.) (6 points)

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