Laser optics will pay a common stock dividend of 160 at the, Finance Basics

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Laser optics will pay a common stock dividend of 160 at the

Question: Laser Optics will pay a common stock dividend of $1.60 at the end of the year (D₁). The required rate of return on common stock (K_e) is 13 percent. The firm has a constant growth rate (g) of 7 percent. Compute the current price of the stock (P₀).

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