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What would be a fair price for this stock today

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Reference no: EM131765283

A company just paid a dividend of $1.60 per share. You expect the dividend to grow 11% over the next year and 10% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 4% per year. If the required rate of return is 10% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)

Reference no: EM131765283

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