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    A share of common stock

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    A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate of this stock is 7%, and if investors require an 11% rate of return, what is the price of the stock?

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    A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate of this stock ...

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    This solution is comprised of a detailed explanation to answer what is the price of the stock.

    $2.19