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Find what is the price of the stock

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Reference no: EM132792731

Problem 1: Consider that you have to analyze a stock to determine this stock's current worth. The current dividend on a stock is $2 per share and your investors require a rate of return of 12%. You expect dividends to grow at a rate of 20% per year over the next three years and then at a rate of 5% per year from that point on. Using the previous assumptions, what is the price of the stock?

Reference no: EM132792731

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