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A firm expects to pay dividends at the end of each of the next four years of $2.00, $4.00, $3.50, and $4.00. After the next
A firm expects to pay dividends at the end of each of the next four years of $2.00, $4.00, $3.50, and $4.00. After the next 4 years, growth is then expected to be constant at 8 percent, and if you require a 13 percent rate of return, how much should you be willing to pay for this stock?
A. $62.77
B. $61.51 C. $67.16 D. $57.12 E. $66.54
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