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What would be a fair price for share of stock in eight years

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Reference no: EM133002116

Problem 1: You are investing in a share of stock. The share will pay a dividend of $9.60 at the end of the first year. The dividend is expected to grow forever at a rate of 2.05% per year. You require a 9.22% rate of return on the stock investment. What would be a fair price for this share of stock in 8 years?

Reference no: EM133002116

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