What is value of stock if investors require rate of return

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Reference no: EM132006006

Company X paid an annual dividend of $1.32 on its shares last year. The dividend is expected to increase at an annual rate of 7% per annum indefinitely. What is the value of the stock if investors require a rate of return of 11% per annum? How does the price change if the growth rate is 6% per annum? Show step by step how to solve using excel and formulas.

Reference no: EM132006006

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