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Calculate stock price today, given the following assumptions: Dividends grow at 9% for t=1, 2 year At the start of year 3, growth slows to
Calculate stock price today, given the following assumptions:
Dividends grow at 9% for t=1, 2 year
At the start of year 3, growth slows to 5%
A dividend paid already at year t=0 was $10
A discount rate is 11%
A) $182 B) $171 C)$101 D) none of them
Correct answer is 171, how? Explain and show formulas, please
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