Evaluating the current price of the stock

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Reference no: EM131945874

Question: BioScience Inc. will pay a common stock dividend of $7.50 at the end of the year (D₁), The required return on common stock (K_e) is 20 percent. The firm has a constant growth rate (g) of 9 percent. Compute the current price of the stock (P₀). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131945874

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