Determine the highest price that like to buy the stock

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Problem 1: Normal Stocks is reinvesting 40% of its earnings in a new project with a rate of return of 10%. If the growth rate is 3% and expected dividend is P1.00 per share, what is the price (Po) of its stock? Determine the highest price that you would like to buy the stock in the market. Justify your answer.

Reference no: EM132979487

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