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number 3 3. Olive Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings
number 3
3. Olive Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 30% for the next 3 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, DO, was $1.35. its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. Then the current price of the common stock is nearest to? * O A) $25.7 O B) $27.9 O C) $29.2 C O D) $34.9 O E) None of the above Step by Step Solution
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