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A share of stock just recently released a dividend for $0.63 per share, and has expected growth rate of 4.00% in the next year, 1.90%
A share of stock just recently released a dividend for $0.63 per share, and has expected growth rate of 4.00% in the next year, 1.90% in the second year, 1.90% in the third year and 1.10% in the fourth year. Finally the firm expects the growth to become 4.20% long-term thereafter. Given that the expected discount rate on these bonds is 18.60%, what is the expected price of this stock? a. $3.86 b. $4.30 c. $4.93 d. $4.49
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