How much should you be prepared to pay for the stock

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You believe the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Therefore, you expect dividends to grow at a rate of 4% a year in perpetuity. If you require a return of 16% on your investment, how much should you be prepared to pay for the stock? (Round to two decimals).

Reference no: EM131843975

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