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An analyst has been following American Dream stock. He projects the following dividends for the...

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Finance

An analyst has been following American Dream stock. He projects the following dividends for the next three years:

YEAR 1 2 3
Dividend $1.87 $2.54 $2.93

The analyst notes that American Dream stock has a required return of 10.27%. The analyst projects that dividends will grow at a constant rate of 4.00% per year after year 3.

What is the projected selling price for the stock at the end of year 3?

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