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How much will you pay for a share of stock today?

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A Store paid an annual dividend of $11.15 per share last month. Today the company announced that future dividends will be increasing by 2.6 % annually. If you require a 12% rate of return how much will you pay to purchase one share of stock today?

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The solution explains how to determine the price of a stock

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The price we would pay is the present value of dividends. Since the dividends grow at a constant ...

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