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Dividend Valuation Approach - An analyst's forecast for a company's dividends for the next three years are: D1 = $8,800 D2 = $9,100 and D3

Dividend Valuation Approach - An analyst's forecast for a company's dividends for the next three years are:

D1 = $8,800 D2 = $9,100 and D3 = $10,400

If the analyst uses an Re = 13% and g = 5% for the company, what would be the continuous growth (in dollars) for the company using the dividend approach model?

A.

$94,956

B.

$59,472

C.

$120,796

D.

$130,000

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