A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
$
value = dividend next year/(Required return - growth rate)
=>
Price at year 4 = D5/(r-g)
= 1*1.1^4/(0.14-0.1)
= 36.60
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