A company will pay a 5 per share dividend in 1 year the, Ask an Expert

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A company will pay a $5 per share dividend in 1 year. The dividend in 2 years will be $7 per share, and it is expected that dividends will grow at 5% per year thereafter. The expected rate of return on the stock is 13%.

a. What is the current price of the stock?

b. what is the expected price of the stock in a year?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91784951

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