Estimate of company dividends

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Reference no: EM132050582

An analyst has made the following estimate of Company Z’s dividends. After 5 years of growing annually at 2% from an initially value of $1.00, company Z is expected to quit growing and pay a constant dividend of $1.5 indefinitely. If the required return is 12%, what should the stock of Company Z sell for today?

Reference no: EM132050582

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