Question: Widgets Inc. has been performing well lately. Analysts believe that the company's earnings (and dividends) will grow at a rate of 15 percent each year

Widgets Inc. has been performing well lately. Analysts believe that the company's earnings (and dividends) will grow at a rate of 15 percent each year into the foreseeable future. Next years dividend is expected to be $4.00 per share. If the required rate of return on the stock is 20 percent, what should a share of stock sell for today?

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