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Use the Gordon Growth Model. Gordon & Co . s stock has just paid its annual dividend $ 1 . 5 per share. Analysts believe

Use the Gordon Growth Model. Gordon & Co

.

s stock has just paid its annual dividend $

1.5

per share. Analysts believe that Gordon will maintain its historic dividend growth rate of

4 % .

If the required return is

9 %,

what is the expected price of the stock next year?

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