What should be the price of this common stock

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Reference no: EM132057747

JMB corporation has an issue of common stock. The firm most recently paid a dividend of $0.80 per share. The dividend is projected to grow at the rate of 20% for the next two years followed by 10% for the third year and 5% thereafter for indefinite future. If the investor demand 13% return on similar risk stocks, what should be the price of this common stock?

Reference no: EM132057747

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