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Question
Wilson's Furniture is experiencing good growth so has decided to commence paying dividends starting next year. The first dividend will be $0.50 a share with annual increases of 4 percent in the dividend amount. The discount rate is 10 percent. What will the value of this stock be four years from now?A. $8.50
B. $8.72
C. $9.03
D. $9.23
E. $9.75
Answer
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