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Annual dividends per share paid in 2020 - $3.00 Earnings per share - $2.50 Net Income - $2,500,000 Dividend growth rate for next year -

Annual dividends per share paid in 2020 - $3.00

Earnings per share - $2.50

Net Income - $2,500,000

Dividend growth rate for next year - 2%

Investor's required rate of return - 10%

1) What would you expect the current stock price to be in 2021?

2) Which statement would be correct?

A)The dividend yield in 2021 will be 4.5%

B)The profit margin is 1.75%

C)The PE ratio is 6.0x

D)The book value per share is $16.10

E)The internal growth rate is 8.28%

F)The number of common stock shares is 1,000,000

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