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What is the firm expected stock price in five years

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Question - Medical Corporation of America (MCA) has a current stock price of $36, an expected constant growth rate of 5%, and its last dividend (D0) was $2.40. In view of MCA's strong financial position, its required rate of return is 12 percent. If MCA's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in five years?

Reference no: EM133019943

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