Calculate the value of the stock


Advanced corporation's growth has slowed to a constant rate during the past few years. As a result, the company expects its common stock dividend to grow at a constant 4 percent for the remainder of the company's life. A few days ago, advanced paid common stockholders a $5 dividend. If the required rate of return on the company's stock is 12 percent, what is the value of the stock today?

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Finance Basics: Calculate the value of the stock
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