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Please help with this home work question. Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 21.00%
Please help with this home work question. Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 21.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?
Select the correct answer.
a. $40.73b. $40.02c. $37.89d. $39.31
e. $38.60
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