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#38 You find a stock that has announced that it will pay its first dividend of $1.65 in eight years and then grow the dividend

#38 You find a stock that has announced that it will pay its first dividend of $1.65 in eight years and then grow the dividend at 4.5% afterward. If you require a return of 18%, what is the most you would be willing to pay for the stock today?

  • A. $12.22

  • B. $4.01

  • C. $3.66

  • D. $3.84

  • E. $3.25

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