The company will then have constant dividend

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Reference no: EM131338007

Fey Fashions expects the following dividend pattern over the next seven years.

year 1 year 2 year 3 year 4 year 5 year 6 year 7

$1.30 $1.43 $1.57 $1.73 $1.90 $2.09 $2.30

The company will then have a constant dividend of $2.60 forever. What is the stock's price today if an investor wants to earn:

a. 17%

b. 23%

Reference no: EM131338007

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