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Best estimate of stock current market value

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Reference no: EM132022697

Celaya Industries just paid a dividend of D0 = $1.25. Analysts expect the company's dividend to grow by 20% this year, by 15% in Year 2, and at a constant rate of 4% in Year 3 and thereafter. The required return on this low-risk stock is 8.50%. What is the best estimate of the stock's current market value?

Reference no: EM132022697

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