Stocks of similar risk have effective annual rate of return

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Davy Jones is considering the purchase of stock in Giant Squid Inc. knowing that stocks of similar risk have an effective annual rate of return of 14%. Giant Squid Inc. intends to pay quarterly dividends, with the first dividend of $1 occurring in two months. Each subsequent dividend will be 2% greater than the previous one. The current price of a share of Giant Squid Inc. is what?

Reference no: EM131360961

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