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Problem:

A stock currently sells for $28 a share. Its dividend is growing at a constant rate, and its dividend yield is 5 percent. The required rate of return on the company's stock is expected to remain constant at 13 percent.

Question: What is the expected stock price, seven years from now? Explain in detail and provide authentic answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91145888

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