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FinanceQ&A LibraryA stock is expected to pay a dividend of $1 one year from now, $1.9 two years from now, and $2.3 three years from now. The growth rate in dividends after that point is expected to be 8% annually. The required return on the stock is 14%. The estimated price per share of the stock six years from now should be $_________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35).Start your trial now! First week only $4.99!*arrow_forward*

Question

A stock is expected to pay a dividend of $1 one year from now, $1.9 two years from now, and $2.3 three years from now. The growth rate in dividends after that point is expected to be 8% annually. The required return on the stock is 14%. The estimated price per share of the stock six years from now should be $_________.

Do not round any intermediate work, but round your *final* answer to 2 decimal places (ex: $12.34567 should be entered as 12.35).

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