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Michael Jones is interested in purchasing the common stock of Ivanhoe, Inc., which is currently priced at $35.40. The company is expected to pay a
Michael Jones is interested in purchasing the common stock of Ivanhoe, Inc., which is currently priced at $35.40. The company is expected to pay a dividend of $2.58 next year and to increase its dividend at a constant rate of 6.50 percent. (a) What should the market value of the stock be if the required rate of return is 14 percent? (Round answer to 2 decimal places, eg. 15.20.) Market value of stock $
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