Analysts expect the dividend to grow

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Reference no: EM131529302

Donna Inc., just paid a dividend of $1.00 and analysts expect the dividend to grow at its compound average growth rate of 10.00% forever. If you plan on holding the stock for just 7 years, and you have an expected rate of return of 14%, how much would you pay for the stock? Assume that the next owner also expects to earn 14% on his or her investment.

Reference no: EM131529302

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