What is the maximum price you should pay for stock

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Reference no: EM131047466

The QuickFix Company just paid a dividend of $3.00 and analysts expect the dividend to grow at its compound average growth rate of 10.72% forever. You plan to purchase the stock then hold it for 10 years. Your expected rate of return is 12%, and the next owner expects to earn 12% on this his or her investment. What is the maximum price you should pay for this stock?

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Reference no: EM131047466

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