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( 3 ) Ginger industries just paid a dividend of $ 1 . 5 0 , and the dividends are expected to grow at a

(3)

Ginger industries just paid a dividend of $

1.50,

and the dividends are expected to grow at a constant rate of

4 %

forever. If the required rate of return by stockholders is

12 %

what will be the price of the stock of Ginger Industries?

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