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Airlines paid an annual dividend of $1.30 a share last month. The company is planning on paying $1.60, $1.80, and $1.90 a share over the
Airlines paid an annual dividend of $1.30 a share last month. The company is planning on paying $1.60, $1.80, and $1.90 a share over the next 3 years, respectively. After that, the dividend will be constant at $1.75 per share per year. What is the market price of this stock if the market rate of return is 9.5 percent?
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$13.98
$14.07
$14.71
$17.26
$18.44
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