Question: Consider a stock that is expected to pay a dividend of $ 1 . 0 8 one year from now. The dividend is expected to

Consider a stock that is expected to pay a dividend of $1.08 one year from now. The dividend is expected to grow at a constant rate of 1% per year forever. Firms in the same industry provide an expected rate of return of 7.2%. What is the current price of the stock?
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