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Superman Inc. will pay annual dividends of $241, $3.47, and $3.52 a share over the next three years, respectively. After that it will maintain a
Superman Inc. will pay annual dividends of $241, $3.47, and $3.52 a share over the next three years, respectively. After that it will maintain a constant dividend growth rate of 3 percent since its business will be leveled off. You will only buy this stock if you can earn at least a rate of return of 15 percent. What is the maximum amount you are willing to pay for one share of this stock today? Select one: a $26.90 b. $30.75 c. $27.46 d. $33.19 e. $32.85
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