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Posted on Nov 05, 2022

You purchased a stock that just paid an annual dividend of $2.80 per share. You require a 12 percent rate of return and the dividend

You purchased a stock that just paid an annual dividend of $2.80 per share. You require a 12 percent rate of return and the dividend increases at 3.25 percent annually.

(a) What is the current price?

(b) What will the price 9 years from now?

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