Compute the current price of stock

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Reference no: EM131844091

BioScience Inc. will pay a common stock dividend of $2.50 at the end of the year (D₁). The required return on common stock (K_e) is 19 percent. The firm has a constant growth rate (g) of 8 percent.

Compute the current price of the stock (P₀). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131844091

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