What is the price of company stock

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A company is getting well known among analysis's due to its planned dividend payment. The company plans to pay 0.80$ a share next year, $1.20 a share the following year and 1.60$ next year. After that it grows at an annual constant rate of 4% forever.

What is the price of this company's stock today if the market rate of return on similar stocks is 10%.

Which is more difficult to do valuation? A stock or a bond? Explain it.

Reference no: EM132657444

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