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Pay for company stock

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Self-Study Problem

Blossom Manufacturing Company has been growing at a rate of 9 percent for the past two years, and the CEO expects the company to continue to grow at this rate for the next several years. The company paid a dividend of $1.10 last year. If your required rate of return is 12 percent, what is the maximum price that you would be willing to pay for this company's stock? (Round intermediate calculation and final answer to 2 decimal places, e.g. 15.25.)

Maximum price$( )

Reference no: EM132157818

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