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problem 9-11 valuation of a constant growth stock A stock is expected to pay a dividend of $2.75 the end of the year (that is,

problem 9-11

valuation of a constant growth stock

A stock is expected to pay a dividend of $2.75 the end of the year (that is, D1 = $2.75), and it should continue to grow at a constant rate of 8% a year. If its required return is 12%, what is the stock's expected price 4 years from today?

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