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Page Page 12 of 3 Question 12 (3.3 points) There is a small company that currently does not pay dividends. However, 3 years from now

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Page Page 12 of 3 Question 12 (3.3 points) There is a small company that currently does not pay dividends. However, 3 years from now the company is expected to pay an annual dividend of $2.00 (Hint: D3=$2.00). The dividend will then grow by 2% annually forever. Suppose the market requires an annual return of 6% on the company's stocks, what should be the stock price today? A) $44.50 B) $75.00 C) $66.75 D) $50.00

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