How much should you be prepared to pay for the stock

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Question - You believe that the Non-Stick Gum Factory will pay a dividend of $1 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 5% a year in perpetuity. If you require a return of 12% on your investment, how much should you be prepared to pay for the stock?

Reference no: EM133185361

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