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Problem:

A stock current dividend is $1.00 and its expected dividend is $1.10 next year. If the investor required rate of return is 15% and the stock is currently trading at $20.00.

Required:

Question: What is the implied expected price in one year?

Note: Can someone please give me a step by step solution?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174793

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