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Question
Hurricane Shutters Inc. paid a dividend of $1.30 yesterday. The next dividend will be in one year and is expected to be $1.50. After that, dividends are expected to grow at a constant 15 percent forever. The discount rate for Hurricane Shutters Inc. is 25 percent. What should be the market price of the stock?
a. $25
b. $15.00
c. $13.20
d. $13.80
e. $18.75
Answer
This answer is hidden. It contains 11 characters.
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