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BKK Tires just paid a dividend of D0= $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2,
BKK Tires just paid a dividend of D0= $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 9%. What is the expect price at the present time?
a. 46.34
b. 44.87
c. 43.21
d. 45.99
e. 47.32
BKK Tires just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 9%. What is the expected price at the present time? Select one: a. $46.34 b. $44.87 c. $43.21 d. $45.99 e. $47.32Step by Step Solution
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