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Evaluate what is the price of the stock today

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Problem 1: New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.55 per share exactly 6 years from today. After that, the dividends are expected to grow at 2.8 percent forever. If the required return is 10.6 percent, what is the price of the stock today?

Reference no: EM132675655

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