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F. (15 points) Assume that a company just paid a dividend of $3.00. Your research indicates that analysts believe earnings and dividends will grow 5%

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F. (15 points) Assume that a company just paid a dividend of $3.00. Your research indicates that analysts believe earnings and dividends will grow 5% a year for the foreseeable future. Based on returns that other similar stocks are currently offering, you believe that an acceptable rate of return for investing in this stock would be 9%. (a) What would you expect the stock's price to be today? (b) Under the same assumptions, what would you expect the stock's price to be two years from now

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