D1 = 1.75, ke = 12%, g = 6%
P0 = D1/(ke -g) = 1.75/(0.12-0.06) = 29.1667 = 29.17
NOW P4 = P0*(1+g)^4 = 29.1667*(1+0.06)^4 = 36.82
Answer : 36.82 (Thumbs up please)
eBook Problem Walk-Through A stock is expected to pay a dividend of $1.75 at the end...
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