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PLEASE SHOW ME HOW TO CALCULATE AWE Inc.'s dividend growth rate is expected to be 20% per year for the next 3 years and zero

PLEASE SHOW ME HOW TO CALCULATE

AWE Inc.'s dividend growth rate is expected to be 20% per year for the next 3 years and zero percent afterwards. The past dividend, D0, is $1 and the beta of the stock is 1. The market risk premium is 8%, and the risk-free rate is 2%. What is the expected price of the stock?

Select one:

a. $17.76

b. $18.81

c. $20.77

d. $19.98

e. $16.56

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The correct answer is: $16.56

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