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Finance

Problem:

A stock is expected to pay a divident of 0.75% at the end of the year (D1=$0.75) The required rate of return is rs=10.5% and the expected constant growth rate is g=6.4%.

Required:

What is the stock's current price? ( and please explain how you got the answer )

a) 17.39

b)17.84

c)18.29

d. 18.75

e) 19.33

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162668

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