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Oorreeoos Inc. is presently enjoying abnormally high growth because of a surge in the demand for fake chocolate cookies. The company expects earnings and dividends
Oorreeoos Inc. is presently enjoying abnormally high growth because of a surge in the demand for fake chocolate cookies. The company expects earnings and dividends to grow at a rate of 20% for the next 2 years, after which growth will return to a long-term rate of 5% for the foreseeable future. The companys last dividend, which was just paid, was $2.50 per share. The required return on the companys stock is 15%. What is the current price of the stock?
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$16.28
$24.42
$37.98
$33.91
$20.35
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