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SmartInvestment's last dividend was $1.75. It's dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to
SmartInvestment's last dividend was $1.75. It's dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. It's required return (Rs) is 12%. What is the best estimate of the current stock price? (Please show work) A) $41.58 B) $42.64 C) $43.71 D) $44.80 E) $45.92
A) $41.58
B) $42.64
C) $43.71
D) $44.80
E) $45.92
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