What is your estimated value of stock if required return

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Reference no: EM131521070

Suppose Saragasso, Inc. is expected to pay a dividend of $3.00 at the end of the year on its common stock. Because of its potential growth prospects the dividend is then expected to increase at the rate of 3% per year. What is your estimated value of this stock if the required return is 10%?

Reference no: EM131521070

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