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What would be a fair price in six years

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Reference no: EM133002095

Problem 1: You are investing in a share of stock. The share just paid a dividend of $3.57. The dividend has been growing and is expected to grow forever at a rate of 2.64% per year. You require a 10.31% rate of return on the stock investment. What would be a fair price/share in 6 years?

Reference no: EM133002095

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