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A stock is expected to pay it's first $0.79999999999999999 dividend in 2 years from now (T=2). The Dividend is expected to be paid annual dividends
A stock is expected to pay it's first $0.79999999999999999 dividend in 2 years from now (T=2). The Dividend is expected to be paid annual dividends forever and grow by -3% pa. The Discount rate is 6% pa. Estimate what the stock price will be in 2.75 years from now. The stock price at time 2.75 is expected to be:
Select one:
a) $9.5478
b) $9.2860
c) $9.0074
d) $8.7372
e) $8.6881
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