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A stock expects to pay a dividend of $5.20 per share next year. The dividend is expected to grow at 20 percent per year for
A stock expects to pay a dividend of $5.20 per share next year. The dividend is expected to grow at 20 percent per year for the followingext two years. Thereafter, the dividend growth rate is expected to be 5 percent per year indefinitely. Investors require a rate of return of 13 percent on this stock. What should be the price of one share of the stock today? $86 $83 $92 $89 $95
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