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You believe you can sell the stock then for 1250 if your

Gakuto Inc. just paid a dividend of $1.20 on it's common stock at the end of last year. Dividends next year are expected to be $1.75. You believe you can sell the stock then for $12.50. If your required rate of return on this stock is 11%, how much are you willing to pay for the stock today?

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Finance Basics: You believe you can sell the stock then for 1250 if your

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