Calculate the present value of this stock

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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: EM131015719

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