Question: eBook Problem Walk-Through A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D 1 = $2.75), and

eBook Problem Walk-Through

A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D₁ = $2.75), and it should continue to grow at a constant rate of 3% a year. If its required return is 13%, what is the stock's expected price 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

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