What is the value of a stock that is expected to pay

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Problem 1: What is the value of a stock that is expected to pay a constant dividend of $2 per year if the required return is 15%?

Problem 2: What would the stock price if the company in Q1 starts increasing the dividend by 3% per year, beginning with the next dividend?

Problem 3: ABC company just paid annual dividend of $1.5, and the dividend increases annually at 3%. If you expect the rate of return from this stock at 9%, what would be the price of stock you would want to pay?

Reference no: EM132828328

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