### What is the fair value of the stock

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##### Reference no: EM131524905

A corporation has just paid a dividend of \$1.5, i.e. D0=\$1.5. Due to its growth potential, its dividends are expected to grow at 5% per year starting with the next dividend. Shareholders require 12% of return on their investments in companies similar to this one. What is the fair value of the stock?

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