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Problem 8-19 Value a Constant Growth Stock (LG8-5) Financial analysts forecast Safeco Corp.s (SAF) growth rate for the future to be 8 percent. Safecos recent

Problem 8-19 Value a Constant Growth Stock (LG8-5)

Financial analysts forecast Safeco Corp.s (SAF) growth rate for the future to be 8 percent. Safecos recent dividend was $1.75.

What is the value of Safeco stock when the required return is 10 percent?

Value of stock $

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