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Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are
Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (r s) is 12%. What is the best estimate of the current stock price?
a. | $43.71 | |
b. | $44.80 | |
c. | $41.58 | |
d. | $42.64 | |
e. | $45.92 |
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