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Business Finance - Calculate Current Price of the Stock

Company X is expected to pay a year-end dividend of $8 per share of its common stock. After the dividend payment, the stock is expected to sell at $100 per share. The required rate of return on the common stock is 20%. Calculate the current price of the stock.

(Please show how to do this, in formulas or on the calculator or both)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91592229

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