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A stock is expected to pay its first $1 dividend in 4 years from now. The dividend is expected to be paid annually forever and
A stock is expected to pay its first $1 dividend in 4 years from now. The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 7% pa. Estimate the current stock price. The current stock price should be: Select one: a. $10 b. $9.16 c. $8.16 d. $7.63 e. $7.13
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