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Question 2 8 2 . 5 p t s A firm recently paid a $ 1 4 . 5 0 annual dividend. The dividend is

Question 28
2.5pts
A firm recently paid a $14.50 annual dividend. The dividend is expected to increase by $ 0.50 in each of the next two years. In the second year (at t=2), the stock price is expected to be $120. The required rate of return for this stock is 15.0 percent Calculate the stock price.
$115.50
$112.52
$113.99
$114.05
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