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How much should you pay for the stock

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Reference no: EM132679065

You are going to purchase 1 share of common stock of ABC Inc. The company just paid a dividend of $5.10. Dividends are paid annually. You expect the dividend to grow by 3.8% per year. You have a required rate of return of 17.0% compounded annually. How much should you pay for the stock. Your answer should be accurate to two decimal places.

Reference no: EM132679065

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