A Stock Is Expected To Pay A Dividend Of $0.75 At The End Of The Year

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A Stock Is Expected To Pay A Dividend Of $0.75 At The End Of The Year

. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
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P0=D1/rs-g P0 = .075/0.105-0.064 P0 = .75/.041 P0 = $18.29

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