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Question
The Shoe Box will not pay a dividend for the next two years. The following two years, it will pay annual dividends of $1 per share. Starting in year 5, the dividends will increase by 4 percent annually. The discount rate is 8 percent. What is the value of this stock today?A. $18.18
B. $20.64
C. $22.63
D. $24.08
E. $27.09
Answer
This answer is hidden. It contains 2 characters.
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