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A stock price is expected to pay a dividend of $.75 at the end of the year. The required rate of return is r=10.5%, and the expected constant growth rate is g=6.4%. What is the stock's current price?

a= $17.39,
b= $17.84,
c=$18.29,
d= $18.75,
e= $19.22

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Solution Summary

The solution determines a stock's current price given expected dividend and growth rate.

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