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15 Stock BUYIT plans to pay no dividend in year 1 and a $2 dividend in year 2. Dividends are expected to grow at 2%
15 Stock BUYIT plans to pay no dividend in year 1 and a $2 dividend in year 2. Dividends are expected to grow at 2% after year 2. The discount rate is 20%. Which of the following is true? The stock price today is $12.03 B The stock price in year 5 is $10.50. C The Dividend in year 6 is $2.12 D If you hold this stock for 5 years, yo ur rate of return over the 5-year pe riod will be 119%
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