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How much should you be willing to pay for the stock

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Question - National Corporation's last dividend was $3.70 and the directors expect to maintain the historic 5 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 8 percent for the next three years and the stock will then reach $33 per share. How much should you be willing to pay for the stock if you require a 15 percent return?

Reference no: EM133021665

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