Find the stocks expected price three years from today

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Reference no: EM132045809

Valuation of a constant growth stock

A stock is expected to pay a dividend of $1.75 at the end of the year (i.e., D1 = $1.75), and it should continue to grow at a constant rate of 3% a year.

If its required return is 15%, what is the stock's expected price 3 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM132045809

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