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A company's common stock just paid a divided of $1.75. The dividend is expected to grow at rate of 3.5% per year for the next
A company's common stock just paid a divided of $1.75. The dividend is expected to grow at rate of 3.5% per year for the next two years. The dividend growth rate is then expected to decrease to a constant 2.5% per year indefinitely. The required rate of return on this stock is 7.3%. What is the stock's intrinsic value (Po)? Round intermediate values to 2 decimal places. 4 O a. $47.20 O b. $53.60 O c. $46.15 O d. $38.05 Dr.37
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