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Assume the firms dividend payment this year is $2.32, and that the required rate of return for the firms industry is 9.7%. If the firms
Assume the firms dividend payment this year is $2.32, and that the required rate of return for the firms industry is 9.7%. If the firms dividend will grow 6.1% each year beginning next year, what is the current market value of the firms shares under the Dividend Discount Model?
A.) $36.83
B.) $23.20
C.) $38.08
D.) $68.38
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