Shareholders require 12 of return on their investments in, Financial Management

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Shareholders require 12 of return on their investments in

A corporation has just paid a dividend of $1.5, i.e. D0=$1.5. Due to its growth potential, its dividends are expected to grow at 5% per year starting with the next dividend. Shareholders require 12% of return on their investments in companies similar to this one. What is the fair value of the stock?

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