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15. Alliance stock Just paid a dividend of $1.50 a share (ie. Do $1.50). The dividend is expected to grow at a constant rate of
15. Alliance stock Just paid a dividend of $1.50 a share (ie. Do $1.50). The dividend is expected to grow at a constant rate of 4.00% a year. Alliance stock currently trades for S24.00 a share. What is the expected stock price 1 year from now? What is the required rate of return? (3 points) 16. A stock is expected to pay a dividend of $4.00 at the end of the year (i.e. Di $4.00), and it should continue to grow at a constant rate of 4% a year. If its required return is 12%, what is the stock's expected price 6 years from now? (3 points)
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