What should the price of the stock be today, Finance Basics

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What should the price of the stock be today

Problem

Biggie Company always grows its dividend. The dividend is currently $3 a share and it is expected to grow by 3% per year, similar to historical standards. Using the Dividend Discount Model, what should the price of the stock be today? You are still demanding 10.75% return.

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Finance Basics: What should the price of the stock be today

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