What is the stock price today if an investor wants to earn

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Reference no: EM131517244

Fey Fashions expects the following dividend pattern over the next seven years.

year 1     year 2      year 3          year 4         year 5      year 6        year 7

$1.20      $1.33           $1.46            $1.64      $1.82        $2.02         $2.24

The company will then have a constant dividend of $2.50 forever. What is the stock's price today if an investor wants to earn:

a. 16%

b. 20%

Reference no: EM131517244

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