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Platinum Water Consulting stock has an expected annual return of 10 percent. The stock is currently...

Platinum Water Consulting stock has an expected annual return of 10 percent. The stock is currently priced at 48.16 dollars per share and has an expected dividend yield of 6.47 percent. What is the price of the stock expected to be in 1 year?

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Answer #1

Expected return=dividend yield+Growth rate

Growth rate=10-6.47

=3.53%

Hence expected price=Current price*(1+Growth rate)

=48.16*(1+0.0353)

=$49.860048

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