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A company's dividend is expected to grow at a constant rate of 5%. The company's...

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Finance

A company's dividend is expected to grow at a constant rate of 5%. The company's stock has a required return of 12%.

a) If the company is expected to pay a $3 dividend per share at the end of year 1, find the stock price today.

b) If the company just paid a $4 dividend per share, find the stock price today.

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