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The share of a certain stock paid a dividend of Rs.2.00 last year. The dividend is expected to grow at a constant rate of 7
The share of a certain stock paid a dividend of Rs.2.00 last year. The dividend is expected to grow at a constant rate of 7 percent in the future. The required rate of return on this stock is considered to be 14 percent. How much should this stock sell for now. Assuming that the expected growth rate and required rate of return remain the same at what price should the stock sell 4 years hence.
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