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Business, Finance
Year 4

Working with a stock valuation problem.


A corporation paid a cash dividend of $0.75 for the fiscal year just completed.  It is estimated that this firm's dividends will grow at 6% per year for the foreseeable future.  If you are considering buying this firm's common stock, and, because of the risks involved, require a return of at least 9%, what is the most you should be willing to pay for this stock?

By OTA:  Said Hirsh, PhD (IP)

OTA Rating:  4.5/5

Your Price:  $2.19  (original value ~$3.99)

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