Solved: What should be the price of the stock, Finance Basics

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What should be the price of the stock

Problem:

The corporation projects to pay a dividend of $0.75 next year and then have it grow at 12% for the next 3 years, before growing at 8% indefinitely thereafter. The equity has a required return of 10% in the market. What should the price of the stock be?

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Finance Basics: What should be the price of the stock

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Finance Basics: What should be the price of the stock

Reference No:- TGS02035882

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