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The Starr Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at a constant rate of
The Starr Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Investors require an 14 percent return on the stock.(Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
a) What is the current price?
b) What will be the stock price be in three years?
c) What will be the stock price be in 7 years?
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