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Valuation of a constant growth stock

A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate of 5% a year.

If its required return is 14%, what is the stock's expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92882452

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