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New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.60 per share exactly 7 years from today.

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New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $4.60 per share exactly 7 years from today. After that, the dividends are expected to grow at 2.9 percent forever. If the required return is 10.7 percent, what should the price of the stock be today? Multiple Choice $32.05 $28.95 $49.68 $58.97 $3739 An 118 Next >

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