What is the value of the stock and should you buy

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Reference no: EM13197338

You are trying to decide whether a share of stock in Angeln Inc. is a good buy at $27.50 a share (the most recent closing price). The stock has just paid a dividend of $1.50 per share. Angeln pays dividends annually and the dividends are widely expected to grow at a constant rate of 3% forever. Angeln's cost of equity is 8%. What is the value of the stock? Should you buy?

Reference no: EM13197338

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