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Determining the current stock price

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I couldn't find the formula they arrived at to get the answer to this problem: The current price of a stock is $65.88. If dividends are expected to be $1 per share for the next five years and the required return is 10%, then what should the price of the stock be in 5 years when you plan to sell it? If the dividend and required return remain the same, and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1? Why or why not?

Reference no: EM131868461

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