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What should be the price of the stock in year

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Constant growth:

Question 1: Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of 6 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 16 percent. What is the current value of this stock? What should be the price of the stock in Year 5?

Reference no: EM132505284

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