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AssumingthataStockisexpectedtopayadividendof$6infiveyears time, maintaining at this level of dividend forever. If the required rate of return...

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Finance

  1. AssumingthataStockisexpectedtopayadividendof$6infiveyears time, maintaining at this level of dividend forever. If the required rate of return on similar stocks is 12 per cent, determine the price of this stock.

    Determine the price of this stock if thereafter the dividend growth is expected to be a constant annual rate of 6 per cent forever.

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