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QUESTION 16 The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 2.0% for 2 years,

QUESTION 16

The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 2.0% for 2 years, after which dividends are expected to grow at a rate of 5.0% forever. The firm's required return (r s) is 10.0%. What is the best estimate of the current stock price?

a.

$30.75

b.

$38.16

c.

$41.70

d.

$32.30

e.

$40.48

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