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Ferris Farms Ltd intends to pay a dividend of $4.00 at the end of the year. The dividend is then expected to grow at 25%
Ferris Farms Ltd intends to pay a dividend of $4.00 at the end of the year. The dividend is then expected to grow at 25% for one year, at 20% for one year and then settle down to a long run growth rate of 4%. If investors require a return of 14% to hold the stock, what price should the stock sell for?
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$55.52
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$53.52
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$56.52
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$57.52
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