Dividend is expected to grow at constant rate

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Hart Enterprises is expected to pay a $0.50 per share dividend one quarter from today. The quarterly dividend is expected to grow at a constant rate of 1% per quarter. Suppose you require a effective return of 12% a year. How much are you willing to pay for the stock today? (Hint: convert EAR into periodic rate)

Reference no: EM13872194

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