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A stock just paid a dividend of $ 4 . 0 0 . Next year, you are expecting this dividend to grow by 1 0

A stock just paid a dividend of $4.00. Next year, you are expecting this dividend to grow by 10%, and you are expecting the company to generate earnings of $7.50 per share next year. Looking at comparable firms, you believe that next year, this company will achieve a price-to-earnings (P/E) ratio of 15.6. Given your projections, if the companys stock has a required return of 12%, what price would you be willing to pay for a share of this stock today?

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