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QUESTION 18 The growth in dividends of Torque, Inc. is expected to be 9.8% per year for the next two years, followed by a growth
QUESTION 18 The growth in dividends of Torque, Inc. is expected to be 9.8% per year for the next two years, followed by a growth rate of 4.9% per year for two years. After this four-year period, the growth in dividends is expected to be 3.9% per year, indefinitely. The required rate of return on Torque, Inc. is 11%. Last year's dividends per share were $3.2. What should the stock sell for today? Choose the closest answer. a. $51.44 b. $52.98 c. $48.25 d. $50.18
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