What should be the price of the stock in year five

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Question - Debra King is interested in buying the stock of Cullimber Inc. which is increasing its dividends at a constant rate of 5.0 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 12.00 percent. Current value is $39.75. What should be the price of the stock in year 5?

Reference no: EM133175268

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