Calculate the current price if the required return on stock

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Problem 1: Jackson Corp is expected to pay the following dividends over the next 5 years; $6, 7, 5, 3 and 8. Afterwards, the company will maintain a constant 6% growth rate in dividends. Calculate the current price if the required return on stock is 8%.

a) 300.75
b) 229.23
c) 347.87
d) 311.74
e) 221.22

Reference no: EM132811111

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