What will a share of stock sell for today

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Question - Rotaro Co. just paid a dividend of $1.55 per share. The company will increase its dividend by 24% coming year and then reduces its dividend growth rate by 6% per year until it reaches the industry average of 6% dividend growth, after which the company will keep a constant growth rate till perpetuity. If the cost of equity Rotaro Co., stock is 16 percent, what will a share of stock sell for today?

Reference no: EM132207315

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