What will a share of stock sell for today

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Reference no: EM131999256

Storico Co. just paid a dividend of $5.00 per share. The company will increase its dividend by 15 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever.

If the required return on Storico stock is 10 percent, what will a share of stock sell for today?

Reference no: EM131999256

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