(Answered) Current price of the stock

Finance

Problem: Company Q just paid a dividend of $7.55. It expects dividends to grow at a 15% rate for the next 2 years (years 1 and 2). Afterwards, dividends are expected to grow at a constant 3% rate forever.

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Question: If the required rate of return on the stock is 11%, what is the current price of the stock? Please explain your answer and also provide examples

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Category:- Basic Finance
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