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Calculate the present value of stock

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Reference no: EM131015747

Outback Outfitters is expected to pay a dividend (D1) of $1.00 next year, with an expected constant growth in dividends of 5%. The required rate of return is 11%.

  • Calculate the present value of this stock.
  • What will be the new price of this stock if the discount rate rises to 12%?
  • What will be the new price of this stock if the discount rate falls to 10%?

Reference no: EM131015747

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