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You are considering a major investment in a large public corporation whose shares are trading at $125 today in a buoyant market. Using the following

You are considering a major investment in a large public corporation whose shares are trading at $125 today in a buoyant market. Using the following information determine what price (PO)the market should indicate the price to pay for the shares.

-Dividend paid this year $1.3500 per share

-growth rate of dividends 3.00% per annum

-Your required return on investment 6.00% per annum

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