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The current price of a stock is $102.00. If dividends are expected to be $10 per share for the next 5 years, and the required return is 12%, then what should the price of the stock be in 5 years when you plan to sell it? If the dividend and required return are expected to increase by $5 five years from now, does the current stock price also increase by $5? Why or why not?

Financial Management, Finance

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