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Question
A firm expects to pay dividends at the end of each of the next four years of $2.00, $1.50, $2.50, and $3.50. If growth is then expected to level off at 8 percent, and if you require a 14 percent rate of return, how much should you be willing to pay for this stock?
a. $67.81
b. $22.49
c. $58.15
d. $31.00
e. $43.97
Answer
This answer is hidden. It contains 133 characters.
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