Overview
I'm working on a mathematics multi-part question and need the explanation and answer to help me learn.
A stock is expected to pay a dividend of $2.25 at the end of the year (i.e., D1 = $2.25), and it should continue to grow at a constant rate of 3% a year. If its required return is 15%, what is the stock's expected price 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
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