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At what price should each share sell in exactly six years

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Reference no: EM133002100

Problem 1: A share of stock pays a constantly growing (end-of-the-year) dividend. If the stock sells for $57.87/share today, the dividend to be paid in exactly one year (at t=1) is $4.17, and the total return required by investors (in the stock) is 11.23%, at what price should each share sell in exactly 6 years (at t=6)?

Reference no: EM133002100

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