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PAK Inc. just paid a dividend of $2.80 per share on its stock this year. The dividends are expected to grow at a constant rate
PAK Inc. just paid a dividend of $2.80 per share on its stock this year. The dividends are expected to grow at a constant rate of 5% each year. If the required return is 10% on the stock, a. What is the estimated stock price of this company today (P0)? b. What is the estimated stock price of this company in ten years (P10)? Hint: Pt= Dt+1 /(r-g)
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