Find the present price of the stock

Reference no: EM1349408

Underwood Industries just paid a dividend of $1.45 per share. The dividends are expected to grow at 25% rate for the next eight years and then level off to a 7% growth rate indefinitely. If the required return is 12%, what would be the price of the stock today?

Reference no: EM1349408

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Find the present price of the stock : Underwood Industries just paid a dividend of $1.45 each share. The dividends are expected to grow at 25 percent rate for the next 8 years and then level off to a 7 percent growth rate indefinitely.

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