A company has announced that it will pay a dividend of 117


A company has announced that it will pay a dividend of $1.17 per share next year, and thereafter you expect the dividend to grow at a constant rate of 6% per year indefinitely into the future. If the required rate of return is 12.6% per year, what would be a fair price for the stock today? (Answer to the nearest penny.)

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Financial Management: A company has announced that it will pay a dividend of 117
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