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You are considering buying some stock. Suppose the stock recently paid a dividend of $2 per share. You expect the dividend to grow at 9%
You are considering buying some stock. Suppose the stock recently paid a dividend of $2 per share. You expect the dividend to grow at 9% per year. You are planning to hold the stock for one year to collect the next dividend, and then sell if for 92. If your required rate of return on equity is 10%, what price would you put on the stock? (Round your answer to two decimal places)
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