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A company’s shares are expected to pay a dividend of $2.61 per share in one year. The dividend is expected to grow at a
Posted: Tue Nov 16, 2021 7:40 am
by answerhappygod
A
company’s shares are expected to pay a dividend of $2.61 per
share in one year. The dividend is expected to grow at a real rate
of 1% per year indefinitely. The required real rate of return on
the
company’s shares is 8% per year. Calculate the stock price (to
the nearest cent).