What is the value of the stock

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Reference no: EM13266819

You are given the following data:

required return 10%

present dividend $1

growth rate 5%

a. what is the value of the stock?

b. if the growth rate increases to 6% and the dividend remains $1, what is the value of the stock?

c. if the required return declines to 9% and the dividend remains $1, what is the value of the stock? if the stock is selling foor $20, what does that imply?

Reference no: EM13266819

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