Stock will pay dividends at time

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A Stock will pay dividends at time t = 1 of $1.00. It is expected to grow at 10% as far as we can see into the future. If the appropriate discount rate for the risk of this stock is 15%, what should be the value of this stock, at t = 0? Note: The dividend of $1 is at t = 1, not at t = 0! Show solution.

Reference no: EM131049720

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