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Common stock of Fenway Technology is currently priced at $56.00 per share. The stock is expected to pay annual dividends that are expected to grow
Common stock of Fenway Technology is currently priced at $56.00 per share. The stock is expected to pay annual dividends that are expected to grow by 7.3 percent forever starting after the next dividend is paid in 1 year. The expected return for the stock is 12.7 percent. What is the dividend expected to be in 3 years?
$3.48 (plus or minus $0.03)
$3.74 (plus or minus $0.03)
$3.36 (plus or minus $0.03)
$3.85 (plus or minus $0.03)
None of the above is within $0.03 of the correct answer
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