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DCU Company will pay a quarterly dividend per share of $.0.75 at the end of each of the next 10 quarters. Thereafter, the dividend will
DCU Company will pay a quarterly dividend per share of $.0.75 at the end of each of the next 10 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.3 percent, forever. The appropriate rate of return on the stock is 13.6 percent, compounded quarterly. What is the current stock price? (Hint: rate of return is quoted in nominal term, i.e., per year)
Please show all work and how you got your numbers for each calculation
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