Assuming that a company has a dividend growth rate of 5%, the discount rate is 8%, there
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Assuming that a company has a dividend growth rate of 5%, the discount rate is 8%, there are 15 years of annual dividends to be paid and the current dividend is 80p, what is the value of the company’s stock, based on the constant dividend growth rate model?
(A) 80p
(B) 856p
(C) 200p
(D) 965p
(E) 97p
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