Detremine what is the value of ibm stock

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Reference no: EM131925017

IBM just paid a dividend of $1.2 per share.

You expect IBM's dividend to grow at a rate of 10% per year for the next three years, and then you expect constant dividend growth of 5% forever.

Based on the risk of IBM stock, you require a return of 12%. Using the dividend discount model, what is the value of IBM stock?

Reference no: EM131925017

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