Compute the value of the stock under the assumptions

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Reference no: EM132014437

1. Acme Technologies is expected to pay a dividend of $1.00 one year from now. Compute the value of the stock under the assumptions that the annual dividend will grow 3.00% per year in perpetuity and that investors require a 6.80% per year expected return.

Round your answer to the nearest penny. For example, $2,371.243 should be entered as 2371.24

2. Identify the correct formula used to solve the previous problem.

Reference no: EM132014437

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