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Compute the price of the stock

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Question - Maxwell Communications paid a dividend of $0.70 last year. Over the next 12 months, the dividend is expected to grow at 12 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required rate of return (Ke) is 17 percent. Compute the price of the stock (P0).

Reference no: EM133048607

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