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Delco Accents is expected to pay an annual dividend next year of $4.50 a share, a dividend in Year 2 of $5.18, a dividend in
Delco Accents is expected to pay an annual dividend next year of $4.50 a share, a dividend in Year 2 of $5.18, a dividend in Year 3 of $5.95, a dividend in Year 4 of $6.84, and a dividend in Year 5 of $7.87. Thereafter dividends are expected to grow at a constant rate of 5 percent annually. What is the price of Delco Accents' stock given a required return of 15 percent. A. $67.16 B. $58.48 C. $39.87 D. $71.83 E. $60.65
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