Question: Hi can you please help me understand how to work through this question? (Common stock valuation) You are looking to purchase BA Plastics common stock

Hi can you please help me understand how to work through this question?

(Common stock valuation) You are looking to purchase BA Plastics common stock at $1.75 per share,

hold it 1 year, and sell after a dividend of $.50 is paid. How much will the stock price have to increase to

in order to satisfy your required rate of return of 20% and growth is expected at 7%?

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