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Assume that today is 03/08/2012 and you will buy one share of Arbys common stock two years from today. Arbys just paid a dividend (today)
Assume that today is 03/08/2012 and you will buy one share of Arbys common stock two years from today. Arbys just paid a dividend (today) of $7.00 per share on its stock. The dividends are expected to grow at a constant rate of 8% per year indefinitely. If you require a 22% return on Arbys stock, what will the price be in 2 years? (2 years from today)
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