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Shortly after the digital studios incorporation went public, the management announced the following dividends policy. Dividends at year 1 = $ 1 . Dividends at

Shortly after the digital studios incorporation went public, the management announced the following dividends policy. Dividends at year 1=$1. Dividends at year 2=$1.5. Dividends at year 3=$1.9. and after that the company is expected to increase its annual dividends by 3% indefinitely. What is the stock price estimate at that time if the required rate of return was 7%?
a) $41.12
b) $43.73
c) $38.77
d) $23.73
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