What should be the price of the stock today

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Reference no: EM131073414

Namath Corporation's stock is expected to pay a dividend of $1.25 at the end of the year. The dividend is expected to grow by 20% for each of the following two years, and then at a constant rate of 8% per year, thereafter. The stock has a required return of 10%. What should be the price of the stock today?

$50.00

$59.38

$70.11

$76.76

$84.43

Reference no: EM131073414

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