A firm is expected to pay a dividend of 265 next year and


A firm is expected to pay a dividend of $2.65 next year and $2.80 the following year. Financial analysts believe the stock will be at their price target of $45 in two years.

Compute the value of this stock with a required return of 12.6 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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Financial Management: A firm is expected to pay a dividend of 265 next year and
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