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Grow On, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $8.10. You believe that dividends will grow
Grow On, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $8.10. You believe that dividends will grow at a rate of 24% per year for two years, and then at a rate of 6% per year thereafter. You expect the stock will sell for $44.01 in two years. You expect an annual rate of return of 21% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?
A.$83.27
B.$66.49
C.$46.86
D.$56.15
E. $76.92
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