What is the stock price

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Suppose that a stock pays out all of its earnings in dividends and just paid a dividend of $1.25 per share. The dividend is expected to grow by 6% next year, 10% in the second year, 8% in the third year and at a constant 5% forever thereafter. The required return on this stock is 10%. What is the stock's price?

Reference no: EM132057020

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