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10-3 CONSTANT GROWTH VALUATION Ferris Jackson's stock currently sells for $30.00 a share.Itjustpaid a dividend of S1.50 a share(that is,Do=$1.50).The dividend is expected to grow

10-3

CONSTANT GROWTH VALUATION Ferris Jackson's stock currently sells for $30.00 a share.Itjustpaid a dividend of S1.50 a share(that is,Do=$1.50).The dividend is expected to grow at a constant rate of 7% a year. What stock price is expected 1 year from now? What is the required rate of return?

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