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Problem:

The Johnston Company will pay an annual dividend of $2.50 next year. The company has increased its dividend by 2.75 percent a year for the past twenty years and expects to continue doing so.

Required:

Question: What will a share of this stock be worth 12 years from now if the required return is 12 percent?

Note: Explain all steps comprehensively.

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Category:- Basic Finance
Reference No.:- M91148061

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