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2) Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is
2) Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that the required return on Stock B is the same as that on Stock A. If Stock B pays a constant (flat) dividend of $ 2, what is your estimate of Stock Bs price?
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