How much is this stock worth

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Reference no: EM131310888

Suppose you buy a stock that paid an annual dividend this year of $5. Investors' required rate of return for this stock is 16%. The firm has Net Income of $1 million and a Common Book Value of $10 million. Also, the firm retains 70% of its profits. How much is this stock worth?

Reference no: EM131310888

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