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A stock's dividend in 1 year is expected to be $2.6. The dividend is expected to...

A stock's dividend in 1 year is expected to be $2.6. The dividend is expected to remain the same indefinitely. The stock's required return is 11%. The estimated value of the stock today is $________.

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Answer #1

Value of stock = D1 / required rate

Value of stock = 2.6 / 0.11

Value of stock = $23.64

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