How much should you be willing to pay for this stock

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Reference no: EM132073334

A firm expects to generate the net cash flows from the equity at the end of each of the next six years of $2.00, $1.50, $2.10, $2.20 $2.50, and $3.50. If firm’s growth is then expected to level off at 2 percent for ever, and if you require a 10 percent rate of return on its equity, how much should you be willing to pay for this stock?

Reference no: EM132073334

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