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A stock is expected to pay its first $ 320 dividend in 1 year from now. The dividend is expected to be paid annually forever
A stock is expected to pay its first $320 dividend in 1 year from now. The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 5% pa. Estimate the current stock price. The current stock price should be:
a.
$6,400
b.
$4,320
c.
$4,000
d.
$3,809.52
e.
$3,628.12
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