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Price of king richard radio stock

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King Richard Radio's stock is expected to grow at a 10 percent rate for the next 3 years and then to level off at a constant growth rate of 3 percent per year thereafter. The company just paid a dividend of $2.25 (Do = $2.25). If your required rate of return on King Richard Radio's stock is 6 percent, then what is the price of King Richard Radio's stock? (Note that depending upon how you round your dividends, your answer may be off by up to 20 cents.)

Reference no: EM133112454

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