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    Price of a 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 for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the price of the stock?

    © BrainMass Inc. brainmass.com October 9, 2019, 10:04 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/price-of-a-common-stock-207327

    Solution Summary

    Response provides the steps to compute the price of a common stock given the dividend, the growth rate and ROR

    $2.19