What should be the price of the stock in year five

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Question - Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of 6.10 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 16.15 percent.

What is the current value of this stock?

What should be the price of the stock in year 5?

Reference no: EM132923748

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