What would be the fair value of this stock if you wanted

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Question: Weatherhead Bakery, a bakery shop started by a Weatherhead alumn, went public a few years ago. The company currently pays a dividend of $0.55 annually, and pledges to grow their dividends by at a rate of 1.5% annually, forever. Assume the discount rate is 9.5%. What would be the fair value of this stock if you wanted to buy it today?

Reference no: EM133542022

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