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A share of stock has a dividend of D0 = $5. The dividend is expected to grow at a 20% rate for the next 10

A share of stock has a dividend of D0 = $5. The dividend is expected to grow at a 20% rate for the next 10 years, then at a 15% rate for 10 more years, and then at a long-run normal growth rate of 10% forever. If investors require a 10% return on this stock, what is its current price?

A) $100.00

B)$ 82.35

C) $195.50

D) $212.62

E) The data given in the problem are internally inconsistent, that is, the situation described is impossible in that no equilibrium price can be produced.

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