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Question 4 . The share of a certain stock paid a dividend of Rs . 3 . 0 0 last year. The dividend is expected

Question 4. The share of a certain stock paid a dividend of Rs.3.00 last year. The dividend is expected to grow at a constant rate of 8 percent in the future. The required rate of retum on this stock is considered to be 15 percent. How much should this stock sell for now? Assuming that the expected growth rate and required rate of retum remain the same, at what price should the stock sell 3 years hence?
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