Piedmont Enterprises currently pays a dividend (D0) of $0.7 per share. This dividend is expected...
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Piedmont Enterprises currently pays a dividend (D0) of $0.7 per share. This dividend is expected to grow at a 18 percent per year rate for the next 4 years, after which it is expected to grow at 5 percent per year for the foreseeable future. If you require a 17 percent rate of return on an investment of this type, what price do you expect the stock to sell for at the beginning of year 7? Use Table I to answer the question. Round your answer to the nearest cent.
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