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A company's stock is currently selling for 28.50. Its next dividend, payable one year from now, is expected to be 0.50 per share. The company's
A company's stock is currently selling for 28.50. Its next dividend, payable one year from now, is expected to be 0.50 per share. The company's long-run divident growth rate is forecast to be 7.5%. The next day the long -run dividend growth rate forecase is reduced to 7%. Determine the new stck price that keeps the yield unchanged.
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