How much should you be willing

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The Fijian holding limited last dividend was $1.25 and the directors expect to maintain the historic 4% annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 7% for the next three years and the stock will then reach $25.00 per share. How much should you be willing to pay for the stock if you require a 16% return?

Reference no: EM132538887

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