What should the ex-dividend stock price be in year four

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The company X paid a dividend of $1.50 per share and dividends are expected to grow for the next 3 years at 6% per year, then grow at 2% per year forever. - required rate of return for the stock is 10% per year.

1. What should the market price of Company X stock be?

2. What should the ex-dividend stock price be in year 4?

Reference no: EM131606742

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