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A stock is expected to pay its first $11 dividend in 8 years from now. The dividend is expected to be paid annually forever and
A stock is expected to pay its first $11 dividend in 8 years from now. The dividend is expected to be paid annually forever and grow by -1% 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. $74.79 b. $80.03 c. $85.48 d. $85.63 e. $96.63
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