Compute the current fair price of the stock

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Humana Inc. paid a dividend on common stock of $2.40 last year. Over the next years, the dividend is expected to growth at 6%, which is the constant growth rate for the firm. The required return on common stock (Ke) is 11%. Compute the current fair price of the stock (Po). PLEASE SHOW YOUR WORK.

Reference no: EM131902853

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