What basic principle of finance can be applied to the valuation of any investment asset?

1. What basic principle of finance can be applied to the valuation of any investment asset?
2. Use the Gordon Growth Model. Gordon & Co.’s stock has just paid its annual dividend $1.5 per share. Analysts believe that Gordon will maintain its historic dividend growth rate of 4%. If the required return is 9%, what is the expected price of the stock next year?
Provide your rationale and the worked solution.

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