Compute what would present value of the expected dividend

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Problem 1: Williams Inc. is expected to pay a $5 dividend next year and that dividend is expected to grow at 3.4% every year thereafter. If the discount rate is 11.5%, what would be the present value of the expected dividend stream (aka the expected price of the firm's stock)? Answer to 2 decimal places.

Reference no: EM132765243

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