A company just paid a dividend of $1.20 per share. The consensus forecast of financial...
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Finance
A company just paid a dividend of $1.20 per share. The consensus forecast of financial analysts is a dividend of $1.50 per share next year, $2.40 per share two years from now, and $2.90 per share in three years. You expect the price of the stock to be $38 in two years. If the required rate of return is 12% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
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