Question: Johnson and Johnson announced they will pay a dividend next year of $2.10. They expect to grow at 2% per year for the foreseeable future.

Johnson and Johnson announced they will pay a dividend next year of $2.10. They expect to grow at 2% per year for the foreseeable future. If you require a 10% return given the risk of Johnson and Johnson how much are you willing to pay for the stock?

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