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A stock is expected to pay a dividend of $1.00 each year for the next 3 years, after that the dividend is expected to grow
A stock is expected to pay a dividend of $1.00 each year for the next 3 years, after that the dividend is expected to grow at a constant rate of 5% per year forever. The stock s required rate of return is 11%. What is intrinsic value of the stock today?
a None of these
b $13.03
c $16.08
d $14.20
e $18.52
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