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A firm is expected to pay dividends of $ 1 . 0 0 , $ 1 . 5 0 and $ 2 . 0 0

A firm is expected to pay dividends of $1.00, $1.50 and $2.00 over the next three years. Afterthat dividends are expected to grow at 5%. The cost of equity is 10%. The stock should sellfor $______.a.40.25b.30.00c.38.45d.35.21e. Insufficient information

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