Stock according to constant growth stock valuation model

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Reference no: EM131907586

Suppose a common stock pays dividends at the end of each period and the stock has just paid a dividend in the amount of $8.8. If the stock's dividend growth rate is 25 percent for the next two periods and then 3.4 percent per period for every period thereafter and the discount rate is 7.1 percent per period, what is the most you should pay for the stock according to the constant growth stock valuation model.

Reference no: EM131907586

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