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Question
WWW Company currently (t = 0) earns $4.00 per share, and has a payout of 40 percent. Dividends are expected to grow at a constant rate of 4 percent per year. The required rate of return is 15 percent. The price of this stock would be estimated ata. $57.14.
b. $22.86.
c. $15.13.
d. $24.69.
Answer
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