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please find the correct answer thanks Machiavelli's Pizzeria Incorporated (Ticker: MPI) plans to pay a dividend of $4.00 per share in 15 years. Dividends will
please find the correct answer thanks
Machiavelli's Pizzeria Incorporated (Ticker: MPI) plans to pay a dividend of $4.00 per share in 15 years. Dividends will then grow at an annual rate of 4.5 percent for 15 more years after the initial dividend is paid. Thus the abnormal growth period will end 30 years from now. After 30 years, dividends will grow at a constant annual rate of 2 percent indefinitely. If the required rate of return is 14 percent, what is MPI's current price per share (Po)? O $1.35 O $9.62 O $60.22 O $6.34 Step by Step Solution
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