What is the fair value for this stock

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A company is expecting to have earnings of $1.39 per share in one year. $1.75 per share in two years, and $2.26 per share in three years. The dividend payout ratio is also expected to remain at 30% over the next three years. The leading P/E ratio is expected to increase up to 20 in the two years. If the required rate of return is 10%, what is the fair value for this stock?

Reference no: EM131553413

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