What the equilibrium price of the stock should be

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Problem 1: CojectiveInc just paid a dividend of $6.23 per share (that is, D 0 =6.23) . Investors expect this dividend to grow at 25% next year (year 1) and at 15% the following year (, year 2). Thereafter, dividends are expected to grow at a constant rate of 5% forever (i.e., for year 3,4,5,..., infty) . If the required rate of return on this stock is 17.9%, the equilibrium price of the stock should be

Reference no: EM132807854

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