What is the firm current stock price

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Assume that XY is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at 6% rate.

A) What is the firm's current stock price if the required rate is 10%?

B) Now assume that the stock is currently selling at $30. What is expected rate of return?

c) What would the stock price be if it's dividends were expected to have zero growth?

Reference no: EM132436134

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