Stock as investment-what would you value stock at today

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Reference no: EM131359466

You are considering this stock as an investment:

Required return = 5% Last year’s dividend = $1.60 Next year’s dividend = $1.80 Current price = $45 Last year’s price = $45 **

Prior year dividend yield = _____________ Expected next year dividend yield = ________________ Dividend growth rate = _____________________

If the growth rate of the dividend will be constant for ten years, and then will remain constant in perpetuity, what would you value the stock at today? Show the work please.

Reference no: EM131359466

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