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Chromes dividend-paying stock is currently trading at $26 per share in the market. The dividends paid on the stock are expected to grow at a
Chromes dividend-paying stock is currently trading at $26 per share in the market. The dividends paid on the stock are expected to grow at a constant growth rate of 4.8% per year forever. The required rate of return of the stock is 11%. What is the next dividends (that the price implies) that investors of the stock can expect to receive? What is the price of stock expected to be in 7 years?
Please show any necessary formulas/wokring steps, thank you.
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