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Find the stock price today. You expect these dividends the next 4 years: $ 6 . 7 0 ( D 1 ) , $ 1
Find the stock price today. You expect these dividends the next years: $D $D $D and $D After that, constant growth
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Required return What's the current stock price? Hint: use the nonconstant growth example in our spreadsheet to guide you. The price of the stock today is the present value of the first four dividends, plus the present value of the Year stock price. The year stock price DRg Use D and the constant growth rate to get DDo not round intermediate calculations. Round your answer to decimal places eg
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