In the fourth year the stock price is expected to be 20 if


A firm recently paid a $0.44 annual dividend. The dividend is expected to increase by 10 percent in each of the next four years. In the fourth year, the stock price is expected to be $20. If the required return for this stock is 13.5 percent, what is its current value?

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Finance Basics: In the fourth year the stock price is expected to be 20 if
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