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Given the following information, calculate the current value of the stock: current dividend is $3.00, projected super normal growth for three years at 20%, growth
Given the following information, calculate the current value of the stock: current dividend is $3.00, projected super normal growth for three years at 20%, growth rate after year 3 should remain constant at 11% and you want to earn a 16% annual return. What should you pay for the stock?
A.$67.55
B.$83.34 | ||
C.$74.39 | ||
D.$61.46 |
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