### What is market price of this stock if market rate of return

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##### Reference no: EM131520446

KL Airlines paid an annual dividend of \$1.42 a share last month. The company is planning on paying \$1.50, \$1.75, and \$1.80 a share over the next 3 years, respectively. After that, the dividend will be constant at \$2 per share per year. What is the market price of this stock if the market rate of return is 10.5 percent?

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