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27. AAA firm's required retum - 12.00%, the price of the stock - $40 per share. D- $1. Dividend will grow by 30% for the

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27. AAA firm's required retum - 12.00%, the price of the stock - $40 per share. D- $1. Dividend will grow by 30% for the next four years. After the fourth year, the dividend will grow at the rate of g forever. Find g. (hint: De = $1.00(1.30). And then you can pick a number and try (very hard) a. 5.1796 b. 6.34% c. 5.72% d. 6.02%

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