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please be thorough with the explanation.
1. Stock Values The Starr Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a c
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Answer #1

price of the stock using growth model:

dividend*(1+ growth rate) / (required rate - growth)

=>1.95*(1+0.045) / (0.11-0.045)

=>$31.35.

current price = 31.35.

price in three years = current price *(1+ growth rate)^number of years

=>31.35*(1.045)^3

=>$35.78.

price in fifteen years = $31.35*(1.045)^15

=>$60.67.

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