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Douglas Gardens Inc. just paid an annual dividend of $2.52 a share and is expected to increase that amount by 5 percent per year. The
Douglas Gardens Inc. just paid an annual dividend of $2.52 a share and is expected to increase that amount by 5 percent per year. The market required rate of return for stocks of this type is currently 13 percent.
If you are planning to buy 1,000 shares of this stock next year (i.e., one year from today), how much should you expect to pay per share if you expect the market rate of return for this type of security to continue to be 13 percent at the time of your purchase?
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