Valuation of a constant growth stock

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Valuation of a constant growth stock A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = $2.75), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131329840

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