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What is a fair price or value for the share of stock

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Reference no: EM133002089

Problem 1: You are investing in a share of stock. The share will pay a dividend of $8.52 at the end of the first year. The dividend is expected to grow forever at a rate of 3.12% per year. You require a 10.42% rate of return on the stock investment. What is a fair price (or, value) for this share of stock?

Reference no: EM133002089

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