Calculate the price of the stock on the given dates

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Reference no: EM131329178

Today's date is March 30, 2009. E-Pay, Inc. stock pays a dividend every year on March 29. The most recent dividend was $1.50 per share. You expect the company's dividends to increase at a rate of 25 percent per year through March 29, 2012.

After that, you expect that dividends will increase at 5 percent a year. Investors require a 14 percent return on E-Pay stock.

Calculate the price of the stock on the following dates: March 30, 2009; March 30, 2013; and September 30, 2010.

Reference no: EM131329178

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