Dividends are expected to grow at a constant rate

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Reference no: EM131307913

Sky High Co. just paid a dividend of $2.0 per share on its stock. The dividends are expected to grow at a constant rate of 2 percent per year indefinitely.

If investors require an 11.5 percent return on Sky High Co. stock, the current price is $ _________ . Round it to two decimal places, and do not include the $ sign, e.g., 23.56.

Reference no: EM131307913

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