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Firm XYZ expects to earn $6 per share next year. In the next three years, the firms ROE is expected to be 12% and it
Firm XYZ expects to earn $6 per share next year. In the next three years, the firms ROE is expected to be 12% and it is going to payout all dividends every year. Starting from the fourth year, the firm's ROE is expected to increase to 25%, and the firm will set the dividend payout ratio = 70%. Assume that the discount rate is 20%. Find the stock price
A.39.11
B.32.08
C.33.14
D.31.53
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