Question

Asked Oct 23, 2019

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The Brady Corporation just paid a dividend of $1.50. Its stock currently sells for $26.50. If investors require a 12% return on Brady's stock, and its rate of growth is constant 6%, what is the estimated value of Brady's stock two years from now?

Step 1

**Calculation of Value of Stock two years from now:**

The value of Stock two years from now is **$23.73.**

**Excel Spreadsheet:**

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