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You are considering buying a stock that is expected to pay a dividend of $3.63 next year. Dividends are expected to grow at a constant
You are considering buying a stock that is expected to pay a dividend of $3.63 next year. Dividends are expected to grow at a constant rate of 5.41% forever. If the required return is 14.7%, what is the value of the stock?
What is the most you should be willing to pay for the stock in the table? Expected Expected Price in 1 Dividend Year $379.49 $3.58 Required Current Return Price in 1 year 5.7% $3Step by Step Solution
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