What is the stock price today

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A stock is expected to pay a dividend of $1.00 in year 1, $2.00 in year 2, and $3.00 in year 3 (that is, D1 = $1.00, D2 = $2.00, and D3 = $3.00). Afterwards dividends will grow at a constant rate of 5% per year. Assume the stock's required return is 13%. What is the stock price today (P0)? Round your answer to 2 decimal places.

Reference no: EM132842564

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