Stock price today = $86.4
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Dividend yield = dividend / share price
0.0682 = dividend/93.93
Dividend net year = $6.41
Stock price next year = 93.93
Expected return = 16.13%
Current price of stock = discounted value of stock price and
dividend
= (93.93 + 6.41)/(1+ 0.1613)
= 100.34/1.1613
= $86.4
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