Valuation of constant growth stock

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VALUATION OF A CONSTANT GROWTH STOCK

A stock is expected to pay a dividend of $2.25 at the end of the year (i.e., D1 = $2.25), and it should continue to grow at a constant rate of 4% a year. If its required return is 14%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131916298

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