What is the expected price of the stock in a year

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Reference no: EM131445520

A company will pay a $2 per share dividend in 1 year. The dividend in 2 years will be $4 per share, and it is expected that dividends will grow at 2% per year thereafter. The expected rate of return on the stock is 10%.

a) What is the expected price of the stock in a year?

b) What is the expected price of the stock in a year?

Reference no: EM131445520

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