What should be the price of the stock today

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Reference no: EM132908774

Problem 1: Last year, UCC Corporation paid a P1.50 dividend. The investors of UCC expect that dividend will grow by 5% each year forever. If the required return on the stock investment is 15%, what should be the price of the stock today?

Option 1: P10.50
Option 2: P15.75
Option 3: P16.67
Option 4: P17.50

Reference no: EM132908774

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