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17) What should you pay for a stock if next year's annual dividend (D) is forecasted to be $5.25, with a constant-growth rate of 2.85%,
17) What should you pay for a stock if next year's annual dividend (D) is forecasted to be $5.25, with a constant-growth rate of 2.85%, and you require a 15.5% rate of return? If the current market price is $38.70, what would you say about this stock valuation? (2 points) Show formula and your calculations
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