Particular stock that is expected to pay the dividend

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Reference no: EM131607081

John is looking to value a particular stock that is expected to pay the dividend of $1.15 at the end of each year for at least the next few years. John expects to to be able to sell the stock at the end of year two, just after he receives the dividend in that year, for $55 per share. Given this information, what is the estimate of the stock's price today if the required rate of return is 12.00%.

Reference no: EM131607081

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