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Stock price today given expected dividends

A company expects to grow its dividend by 2% each year, forever. The expected dividend in year 1 is $2.00. Investors require a 6% rate of return on this stock. What is the stock price today?

$25.66
$36.23
$50.00
$22.96
$47.02
$19.27

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A company expects to grow its dividend by 2% each year, forever. ...

Solution Summary

The solution estimates stock price today given expected dividends using simple, step by step calculations.

$2.19