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A stock currently pays a 5 dollar dividend. Dividends are expected to grow at 10 percent. The required return on the stock is 20%. What

A stock currently pays a 5 dollar dividend. Dividends are expected to grow at 10 percent. The required return on the stock is 20%. What is fair value of this stock based on the constant growth model?

Question 5 options:

a)

$50

b)

$55

c)

$60

d)

$65

e)

none of the above

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