A stock just paid a $1 dividend. You expect the dividend to be $1.25 next...

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Finance

  1. A stock just paid a $1 dividend. You expect the dividend to be $1.25 next year, $1.50 the year after that and then grow 2.5% per year forever. Stockholders require an 8% return for stocks of this risk and the companys WACC is 7%. What is the best estimate of the stocks value?

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