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Suppose a firm just paid $150 million dollars in total dividends. You expect future dividends to grow at a constant rate of 5% per year,
Suppose a firm just paid $150 million dollars in total dividends. You expect future dividends to grow at a constant rate of 5% per year, forever. If the required return by shareholders is 15.5%, what is the price of the stock? (Assume that there are 50 million shares outstanding) O $30.00 O $38.02 $28.56 $22.54 $32.85 O $35.09 O $46.01
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