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Question 7 A firm will issue a dividend of $2.4 the next year(D1=2.4), the dividend is expected to experience super growth for the next 2
Question 7
A firm will issue a dividend of $2.4 the next year(D1=2.4), the dividend is expected to experience super growth for the next 2 years at 30%, then the firm is expected to resume normal growth of 5%. Suppose the cost of the firm is the 15%. What is the estimated price of the stock?
a. 21.56
b. 32.36
c. 25.98
d. 29.22
e. 24.35
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