What is your estimate of the stocks price

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It is projected that a firm’s next four annual dividends will be $0.50, $1.00, $1.50, and $1.75. After the fourth dividend, dividends are expected to grow at a constant annual rate of 7%. Assuming that the required rate of return for the stock is 16%, what is your estimate of the stock’s price?

Reference no: EM131323982

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