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Shares of Books Inc. expect to pay annual dividends of $1.5 at t=1,$2.5 at t=2 and $4 at t=5 (there are no dividends at time

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Shares of Books Inc. expect to pay annual dividends of $1.5 at t=1,$2.5 at t=2 and $4 at t=5 (there are no dividends at time 3 and 4 ). After this period Books Inc. dividends will grow at 3% per yoar. The required rate of return on the stock of Books inc: is 11% per year. What is the price of Books inc. today? a. $39.92 b. $36.30 c. $49.91 d. $52.65

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