Plan to pay dividends-what is the price of stock

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Reference no: EM13875983

Currently retaining all of their earnings and does not plan to pay dividends for the next 5 years. In the 6th year they plan on paying $0.65 per share with the dividend expected to grow at 6.25% per year. The company has a required return of 15%. What is the price of the stock in year 5? Round to two decimals. What is the price of the stock today?

Reference no: EM13875983

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