What is current stock price

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Reference no: EM131878836

Michelle’s Manufacturing Inc. currently pays a $2 per share dividend. Beginning in 4 years, however, the dividend is expected to increase by 5% per year and continue growing at that rate thereafter. To be clear, the dividend at the end of year 3 will be $2, but it will be 5% more at the end of year 4, and continue increasing by 5% thereafter. If the required return on this stock is 13%, what is the current stock price?

Reference no: EM131878836

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