Compute the current price of the stock

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State Street Corp. will pay a dividend on common stock of $2.10 per share at the end of the year. The required return on common stock (Ke) is 8%. The firm has a constant growth rate of 5%. Compute the current price of the stock (Po). This problem incorporates the "Dividend Discount Model" to arrive at the firm's intrinsic value.

Reference no: EM132495001

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