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Fizzy Drinks, Co. expects its sales and earnings to decline in the coming years. The dividends will decline at a rate of 3.50% annually forever.

Fizzy Drinks, Co. expects its sales and earnings to decline in the coming years. The dividends will decline at a rate of 3.50% annually forever. The last dividend paid was $6. The required return for the stock is 18%. The price of the stock in two years is expected to be:

a. $28.63

b. $27.99

c. $27.87

d. $26.93

e. $25.08

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