.What is the value of the stock?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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# 4
A stock just paid a dividend of $1.48. The dividend is
expected to grow at 22.08% for five years and then
grow at 3.78% thereafter. The required return on the
stock is 12.14%. What is the value of the stock?
Submit
Answer format: Currency: Round to: 2 decimal places.
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Transcribed Image Text:# 4 A stock just paid a dividend of $1.48. The dividend is expected to grow at 22.08% for five years and then grow at 3.78% thereafter. The required return on the stock is 12.14%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
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