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Bennoch Corporation is expected to pay $2 dividends per share next year (year 1) to its shareholders. Its required rate of return on equity is
Bennoch Corporation is expected to pay $2 dividends per share next year (year 1) to its shareholders. Its required rate of return on equity is 10%. Dividends are expected to grow at 5% per year for year 2 through year 4, and then slow down to a steady long-term growth rate of 3% for year 5 and beyond. What should be the fair value of its stock price today? O A. $6.8 O B. $10.3 O C. $23.3 O D. $30.1 O E. $34.1 OF. $35.9 O G. $46.2
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