Value of a constant growth stock

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Valuation of a constant growth stock

A stock is expected to pay a dividend of $1.50 the end of the year (that is, D1 = $1.50), and it should continue to grow at a constant rate of 3% a year. If its required return is 15%, what is the stock's expected price 4 years from today? Round your answer to two decimal places.

Reference no: EM13769124

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