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Find what is the market price of plum stock

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Question 1: Peach Company and Plum Corp. are in the same risk class. Peach pays a constant dividend of $5.50 per year, and is selling in the market for $42. Plum just paid a dividend of $4.00 per share. If Plum's dividends are growing at a constant rate of 9% per year, what is the market price of Plum stock?

Reference no: EM132599492

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