Compute the current fair price of the stock


A company will pay a dividend on common stock of $2.10 per share at the end of the year. The required return on common stock (Ke) is 8%. The firm has a constant growth rate of 5%. Compute the current fair price of the stock (Po). Show your work.

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Financial Management: Compute the current fair price of the stock
Reference No:- TGS02409200

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