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4. The Baron Basketball Company ( BBC) earned $ 10 a share last year and paid a dividend of $ 6 a share. Next year,
4. The Baron Basketball Company ( BBC) earned $ 10 a share last year and paid a dividend of $ 6 a share. Next year, you expect BBC to earn $ 11 and continue its payout ratio. As-sume that you expect to sell the stock for $ 132 a year from now. If you require 12 per-cent on this stock, how much would you be willing to pay for it?
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