Calculate the price of the stock on the dates

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Suppose that today's date is March 30, 2010, and that the stock of E-Pay, Inc., pays a dividend every year on March 29. The most recent dividends was $1.50 per share. You expect the company's dividends to increase at a rate of 25% per year through March 29, 2013. After that, dividends will probably increase at 5% per year. Investors require a 14% return on E-Pay stock. Calculate the price of the stock on the following dates: March 30, 2010, September 30, 2011, and March 30, 2014.

Reference no: EM132618496

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