Compute the value of this stock with a required return of


Value of Dividends and Future Price

A firm is expected to pay a dividend of $2.45 next year and $2.75 the following year. Financial analysts believe the stock will be at their price target of $110 in two years.

Compute the value of this stock with a required return of 11.4 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Value of stock $

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Financial Management: Compute the value of this stock with a required return of
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