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A stock is expected to pay its first $100 dividend in 1 year from now. The dividend is expected to be paid annually forever and
A stock is expected to pay its first $100 dividend in 1 year from now. The dividend is expected to be paid annually forever and grow by 2% pa. The discount rate is 5% pa. Estimate the current stock price. The current stock price should be: Question 1 Select one: a. $1,814.06 b. $2,000 c. $3,333.33 d. $3,433.33 e. $5,000
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