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Ford Motor Co. has just paid an annual dividend of $2. Analysts are predicting an 11% per year growth rate in earnings over the next
Ford Motor Co. has just paid an annual dividend of $2. Analysts are predicting an 11% per year growth rate in earnings over the next seven years. After then, Fords earnings are expected to grow at the current industry average of 2% per year. If Fords equity cost of capital is 5% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Ford stock should sell? Group of answer choices $117.93 $133.76 $123.51 $95.08
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