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10-5: Constant Growth Stocks Valuation of a constant growth stock A stock is expected to pay a dividend of $1.75 the end of the year
10-5: Constant Growth Stocks Valuation of a constant growth stock A stock is expected to pay a dividend of $1.75 the end of the year (that is, D1 = $1.75), and it should continue to grow at a constant rate of 8% a year. If its required return is 12%, what is the stock's expected price 3 years from today? Round your answer to two decimal places. $
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