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Acme Corporation just paid a dividend of D 1 = $1.72. Analysts expect the company's dividend to grow by 10% between year 1 and 2,
Acme Corporation just paid a dividend of D 1 = $1.72. Analysts expect the company's dividend to grow by 10% between year 1 and 2, and at a constant rate of 5% from year 2 to 3 a nd continue with the 5% ther eafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stocks current market value? a. $41.59 b. $42.65 c. $43.75 d. $44.97 e. $45.99
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