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Company Y's common stock recently paid a dividend of $ 3. They have traditionally grown their dividend at 4 %. However, after a year of
Company Y's common stock recently paid a dividend of $ 3. They have traditionally grown their dividend at 4 %. However, after a year of great performance, they have decided to begin growing their dividend at 5 %. The price of the common stock is $ 52.00. If the required return on the common stock is 10 %, what will the new stock price be after the change in the dividend growth rate?
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