What would be a fair price in four years

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Problem 1: You are investing in a share of stock. The share just paid a dividend of $2.53. The dividend has been growing and is expected to grow forever at a rate of 3.41% per year. You require an 8.26% rate of return on the stock investment. What would be a fair price/share in 4 years?

Reference no: EM133001037

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