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Compute the current fair price of the stock

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Humana Inc. paid a dividend on common stock of $1.80 last year (Do= $1.80). Over the next years, the dividend is expected to growth at 10%, which is the constant growth rate for the firm. The required return on common stock (Ke) is 12%. Compute the current fair price of the stock (Po). Show work please

Reference no: EM132569620

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