The dividend is expected to grow at the rate of 4 per year


You are considering the purchase of XYZ Company's common stock which will pay a$1.00 per share dividend one year from the date of purchase. The dividend is expected to grow at the rate of 4% per year. If the appropriate discount rate for this investment is 14%, what is the price of one share of this stock?

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Finance Basics: The dividend is expected to grow at the rate of 4 per year
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