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Question
Quality Home Made Ice Cream has plans to pay decreasing annual dividends of $1.50, $1.25, and $1.00 over the next three years, respectively. After that, the firm will increase the dividend by 4 percent each year. What is the value of this stock today at a discount rate of 9 percent?A. $19.26
B. $19.54
C. $19.69
D. $19.93
E. $20.48
Answer
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