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Question
Southern Foods just paid an annual dividend of $1.10 a share. Management estimates the dividend will increase by 10 percent a year for the next four years. After that, the annual dividend growth rate is estimated at 3.2 percent. The required rate of return is 12 percent. What is the value of this stock today?A. $12.55
B. $13.00
C. $14.54
D. $15.81
E. $16.21
Answer
This answer is hidden. It contains 2 characters.
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