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OMG Corporation just paid a $2.00 annual dividend on each share. It is planning on increasing its dividend by 20 percent a year for the
OMG Corporation just paid a $2.00 annual dividend on each share. It is planning on increasing its dividend by 20 percent a year for the next 4 years. The corporation will then decrease the growth rate to a rate of 5 percent per year, and keep it that way indefinitely. The required rate of return is 7.50 percent. Calculate the current value of one share of this corporation's stock. Multiple Choice $141.04 $143.04 $176.18 $130.43 $174.18
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