Problemone year from today investors anticipate that, Ask an Expert

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Problem:

One year from today, investors anticipate that Groningen Distilleries, Inc., stock will pay a dividen of $3.25 per share. After than, investors believe that the dividen will grow at 20% per year for three years before settling down to a long-run groth rate of 4%. The required rate of return on Groningen stock is 15%.

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Question: What is the current stock price?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148487

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