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The required rate of return is 15 percent. Ninex Corp. has just paid a dividend of...

The required rate of return is 15 percent. Ninex Corp. has just paid a dividend of 3.12 and is expected to increase its dividend at a constant rate of 7 percent. What is the expected price of the stock? Round to 2 decimal points.

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Answer #1

Current price=D1/(Required return-Growth rate)

=(3.12*1.07)/(0.15-0.07)

which is equal to

=$41.73

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