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Big company just paid an annual dividend of $2 per share. The company will increase its dividends by 15 percent per year for the next
Big company just paid an annual dividend of $2 per share. The company will increase its dividends by 15 percent per year for the next 11 years, after that the company will keep a constant growth rate of 5 percent per year, forever. If the required return is 12 percent, what is the current stock price of Big company? A) $44.38 B)$70.45 C)$52.78 D)$59.46 E)$65.99
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