What is the current price of the stock

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Reference no: EM13258818

Assume a company pays $ 3 dividend every year in perpetuity. a) If investors reuire a 16 percent rate of return, what is the current price of the stock? b) how much is the PVGO ( pesent value of growth opportunity) if the expected long-run dividend growth rate is 8 percent?

Reference no: EM13258818

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