Find what is the most should pay for the stock now

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Problem 1: You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $5.10 and that dividends will grow at a rate of 9.0% per year thereafter. If you would want an annual return of 16.0% to invest in this stock, what is the most you should pay for the stock now?

Reference no: EM132934045

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