What is the present value of dividend

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Reference no: EM132010438

A stock has an expected annual return of 15.85 percent and is expected to pay annual dividends forever. The first annual dividend is expected in 1 year and all subsequent annual dividends are expected to grow at a constant rate of 3.94 percent per year. The dividend expected in 1 year from today is expected to be 22.52 dollars. What is the present value (as of today) of the dividend that is expected to be paid in 7 years from today?

Reference no: EM132010438

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