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Gentry Can Company's (GCC) letest annual dividend of $1,45 a share was paid yesterday and maintained its historic 6 percent annual rate of growth. You

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Gentry Can Company's (GCC) letest annual dividend of $1,45 a share was paid yesterday and maintained its historic 6 percent annual rate of growth. You plan to surchase the stock today because you believe that the dividend growth rate will increase to 8 percent for the next three years and the selling price of the stock vill be $47 per share at the end of that time. a. How much should you be willing to pay for the GCC stock if you repuire a 12 percent return? Do not round intermediate calculations. Round your answer to the nearest cent. 5 b. What is the maximum price you should be willing to pay for the GCC stock if you believe that the 8 percent growth rate can be maintained indefinitely and you require a 12 percent return? Do not round intermediate calculations, Round your answer to the nearest cent. 5 c. If the 8 percent rate of growth is achleved, what will the price be at the end of Year 3 , assuming the conditions in Part b? Do not round intermediate calculations. Round your answer to the nearest cent. 5

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