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What will a share of stock sell for today

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Question - Silk Co. just paid a dividend of $5 per share. The company will increase its dividend by 15 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep this constant growth rate forever. If the required return on Silk stock is 11 percent, what will a share of stock sell for today?

Reference no: EM132798266

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