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A stock just paid a dividend of $2.50 (i.e., D0=2.50 ). An investor expects that the dividend will grow at 25% annually for the next
A stock just paid a dividend of $2.50 (i.e., D0=2.50 ). An investor expects that the dividend will grow at 25% annually for the next two years and 4% forever thereafter. Assuming a discount rate of 13%, this stock is worth $. 1) 37.33 2) 48.69 3) 41.18 4) 39.26 5) 45.98 6) None of the given answers for this question are within $0.10 of the correct
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