What will the stock price be
Problem:
A company has announced the growth rate of its dividend going forward will be 2% annually forever. The dividend in year 4 will be $3.00. The discount rate on the stock is 10%. What will the stock price be in year 18?
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The dividend in year 4 will be $3.00. The discount rate on the stock is 10%. What will the stock price be in year 18?
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