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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:
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a) | $50 |
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b) | $55 |
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c) | $60 |
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d) | $65 |
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e) | none of the above |
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