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A firm is expected to pay a dividend of $1.55 next year and $1.70 the following year. Financial analysts believe the stock will be at their price target of $50 in two years.

Compute the value of this stock with a required return of 11.5 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92740440

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