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Question
Wheathouse Bakery just paid a dividend of $2.50. They expect the dividends to grow at 15 percent per year for next three years, and then they expect the dividends to remain constant forever. The appropriate discount rate for this firm is 20 percent. What should be the current market price of the stock?
a. $15.69
b. $17.50
c. $17.89
d. $19.01
e. $22.16
Answer
This answer is hidden. It contains 1 characters.
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