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Jones Industries just paid a dividend of $1.75. Analysts expect the company's dividend to grow by 20% this year, by 15% in year 2, and
Jones Industries just paid a dividend of $1.75. Analysts expect the company's dividend to grow by 20% this year, by 15% in year 2, and at a constant rate of 8% in year 3 and thereafter. The required rate of return on this stock is 11%. Determine the price of this stock. (Hint: 2 stage modell. a. $78.30 b. $74.40 c. $90.20 O d. $81.62 O e. $72.40
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