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A company just paid a dividend of $1.20 per share. The consensus forecast of financial analysts is a dividend of $1.80 per share next year
A company just paid a dividend of $1.20 per share. The consensus forecast of financial analysts is a dividend of $1.80 per share next year and $2.10 per share two years from now. Thereafter, you expect the dividend to grow 5% per year indefinitely into the future. If the required rate of return is 11% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
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