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Fey Fashions expects the following dividend pattern over the next seven years: Year 1 $1.40 Year 2 $1.51 Year 3 $1.63 Year 4 $1.76 Year
Fey Fashions expects the following dividend pattern over the next seven years: Year 1 $1.40 Year 2 $1.51 Year 3 $1.63 Year 4 $1.76 Year 5 $1.90 Year 6 $2.05 Year 7 $2.21 The company will then have a constant dividend of $2.40 forever. What is the stock's price today if an investor wants to earn a. 17%? b. 22%? a. What is the stock's price today if an investor wants to earn 17%? $ (Round to the nearest cent.) b. What is the stock's price today if an investor wants to earn 22%? (Round to the nearest cent.) $
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