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A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%,
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. Using the Gordon model what is the stock's current price? (Show your work)
a. $17.39 b. $17.84 c. $18.29 d. $18.75 e. $19.22
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