What should be the price of the stock in year five

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Barbara Jones is interested in buying the stock of Ivanhoe, Inc., which is increasing its dividends at a constant rate of 8.0 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 18.00 percent.

Current Value $28.62

Problem 1: What should be the price of the stock in year 5?

Reference no: EM132841193

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