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Appropriate Stock Price

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The dividend on a common stock is $4.00 the expected growth rate is 10 percent, if you require a rate of return of 20% what is the highest price I should be willing to pay for this stock?

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This solution is comprised of a detailed explanation and calculation to find the appropriate stock price.

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You can find the appropriate price for the stock by using the constant growth method equation that is used to calculate ...

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