You expect the dividend to increase by 5 per year in


DEF'S common stock just paid a dividend of $3 per share. You expect the dividend to increase by 5% per year in perpetuity. If you require a 15% rate of return, what is the price of the stock today?

The answer I'm getting is $30 but apparently thats wrong.

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Finance Basics: You expect the dividend to increase by 5 per year in
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Now Priced at $10 (50% Discount)

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