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Alan & Company just pald a dividend of $2.80 today (i.e., Do =2.80. its required rate of return is 12.4%. If the market expects that

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Alan & Company just pald a dividend of $2.80 today (i.e., Do =2.80. its required rate of return is 12.4%. If the market expects that the dividend will grow at a constant rate of 4% per year forever, Alan & Company's stock should sell for 5 . today. 1) None of the given answers for this question are within $0.10 of the correct answer. 2) 32.64 3) 33.82 4) 35.51 5) 33.09 6) 36.74 A stock just pald a dividend of $2.50 0.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) 39.26 2) 37.33 3) 45.98 4) None of the given answers for this question are within $0.10 of the correct answer. 5) 41.18 6) 48.69

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