What should you pay for the companys stock

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Reference no: EM131230531

Using the Dividend Discount Model :

Micro, Inc., will pay a dividend of $2.30 per share next year. If the company plans to increase its dividend by 9 percent per year indefinitely, and you require a 12 percent return on your investment, what should you pay for the company's stock?

Reference no: EM131230531

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