What would be the price of the stock if such stock exists

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Reference no: EM132882390

Question - If a firm's discount rate is 0.1, and the growth rate of its dividends is 0.11. The next annual dividend is $2, to be paid one year from now.

Q1. Can you use the growing perpetuity formula to calculate the stock price?

Q2. What would be the price of the stock if such stock exists?

Reference no: EM132882390

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