Velvel Van Vleet this day will purchase the shares of Velveeta Venetian Corporation common stock....
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Velvel Van Vleet this day will purchase the shares of Velveeta Venetian Corporation common stock. The company's most recent annual dividend paid on its stock was $1.82, and this dividend is expected to grow at a constant rate of 7.11% indefinitely. Velvel plans to hold the stock for eight years and sell the stock at that time. If his required rate of return is 23.7%, how much will he pay today for the stock ? What price is he expecting to get for the stock when he sells it in 8 years ?
Please answer using formulas or financial calculator entries NOT EXCEL
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