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A firm recently paid a $1.26 dividend. The dividend is expected to grow at a 7.5 percent rate. At a discount rate of 11.69 percent,
A firm recently paid a $1.26 dividend. The dividend is expected to grow at a 7.5 percent rate. At a discount rate of 11.69 percent, what is the value of the firm's stock?
Answer= $32.22
I am really trying to understand this. Please do not post an excel spreadsheet as it confuses me. If you could write out the formula with the numbers that would be extremely helpful.
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