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The Stopperside Wardrobe Co.just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a con

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Answer #1

Current price=D1/(Required return-Growth rate)

=(1.45*1.06)/(0.11-0.06)

=30.74

P3=Current price*(1+Growth rate)^3

=30.74*(1.06)^3

=36.61(Approx).

P15=Current price*(1+Growth rate)^15

=30.74*(1.06)^15

=73.67(Approx).

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