Calculate the expected stock price

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Question - Stock FA has just paid a dividend of $4 and has a dividend stream of $4.6, $5.2 and $5.7 for the first 3 years and has a constant growth rate of 8% thereafter. If the required return on the stock is 15%. Calculate the expected stock price at the end of the third year? Calculate the current price.

Reference no: EM132986139

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