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11 A company is forecasted to pay a 54.00 dividend at the end of year one and a 54.60 dividend at the end of year

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11 A company is forecasted to pay a 54.00 dividend at the end of year one and a 54.60 dividend at the end of year two. At the end of the second year the stock we be sold for 545 25 If the discount rate is 11% what is the price of the stock? D1 $4.00 D2 $4.50 P2 $45 25 PO Year 0 1 2 CF $0.00 $4.00 $49.75 Discount rate 11.00% PO 543

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