How much should he be willing to pay for the stock

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Ken Investor expected the Widget Corporation to pay dividends of $4, $4.5, and $5 over the next three years. He also expects that the stock will have a price at the end of a three- year holding period of $250 per share. If Ken requires a 20% return on an investment in Widget shares, how much should he be willing to pay for the stock?

Reference no: EM131322799

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