How much are you willing to pay for the stock today

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Question: You anticipate that XSensors Co. will pay a constant dividend of $2.49 each year for the next 10 years. After that, the dividend will increase to $4.14 and hold steady for another 10 years. After that, you expect the dividend will start increasing every year at a constant rate of 2.7 percent per year, forever. Your discount rate for this stock is 13 percent. How much are you willing to pay for this stock today?

Reference no: EM131933330

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