What will be the suggested price per share

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Reference no: EM13870657

Assume that a share of stock will pay dividends of $2 in one year, $3 in two years, and $3.50 in three years. For all years after year 3, dividends will grow at a rate of 5%. If shareholders’ required rate of return is 15%, what will be the suggested price per share?

Reference no: EM13870657

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