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A stock is expected to pay a dividend of $3.00 one year from now. Dividend payments are expected to decline thereafter at a rate of
A stock is expected to pay a dividend of $3.00 one year from now. Dividend payments are expected to decline thereafter at a rate of 5% per year forever. If the required rate of return is 15%, which of the following statements is correct? A. The company's current stock price is $20. B. The company's dividend yield is expected to be 10% in 2 years. C. The company's stock price is expected to be $14.25 in 1 year. D. The company's stock cannot be valued using a dividend discount model
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