Question: L&M Incorporated is expected to pay a $ 1 . 5 0 per share dividend at the end of this year ( i . e

L&M Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1= $1.50). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 13%. What is the estimated value per share of L&Ms stock?

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