At what price should key marketing corporation stock be

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Reference no: EM13289340

Key Marketing Corporation Common stock is expected to pay a cash dividend next year of $1.25.

Short term prospects are excellent for Key Marketing. A 17% annual growth is expected for the 2 years following next year's dividend. After that, a normal growth rate of 6% per year forever is expected. The required return is 10%. At what price should Key Marketing Corporation's stock be selling in the market?

Reference no: EM13289340

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