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LuLu Company just paid dividend of $1.50 per share and is expected to continue paying the same amount each year for the next five years.
LuLu Company just paid dividend of $1.50 per share and is expected to continue paying the same amount each year for the next five years. Ahmad interested to buy this stock and plan to hold the stock for five years and required rate of return 12% on this investment. He confident that he will be able to sell this share at $45 at the end of five years. How much should Ahmad offer to buy this stock today?
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