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Suppose a firm will pay a $2 dividend next year and expects to increase dividends by 20%, 15%, and 10% over the following three years.
Suppose a firm will pay a $2 dividend next year and expects to increase dividends by 20%, 15%, and 10% over the following three years. After that, dividends will increase at a rate of 5% per year indefinitely. If the required return is 17%, what is the price of the stock today?
$21.50
$18.80
$19.21
$20.98
$22.14
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