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Common Stock: Calculating Price per Share

An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16%?

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Solution Preview

The answer is in the attached Excel file as well.

An issue of common stock has just paid a dividend of $3.75.  Its growth rate is 8%. What is its price if the ...

$2.19