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A firm recently paid a $12.50 annual dividend. The dividend is expected to increase by $0.50 in each of the next two years. In the

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A firm recently paid a $12.50 annual dividend. The dividend is expected to increase by $0.50 in each of the next two years. In the second year (at t=2), the stock price is expected to be $120. The required rate of return for this stock is 15.0 percent Calculate the stock price. $110.25 $112.25 $109.72 $113.44

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