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Barilla Group just reported $7.4 EPS. Net income will grow at 3 percent per year forever. Barilla will pay no dividends for the next 6
Barilla Group just reported $7.4 EPS. Net income will grow at 3 percent per year forever. Barilla will pay no dividends for the next 6 years. It will pay 20% of its earnings as dividend forever starting in year 7. The required rate of return on this stock is 13 percent. What should be the stock price? Select one: a. 7.74 b. 8.74 c. 4.37 d. 0.87 e. 0.77
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