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Suppose Big D, Inc., just paid a dividend of $2 per share today. It is expected to increase its dividend by 3% per year. The
Suppose Big D, Inc., just paid a dividend of $2 per share today. It is expected to increase its dividend by 3% per year. The market requires a return of 10% on assets of this risk. how much should the stock be selling today? How much should the stock be selling in year 7? (30 points) Show your calculation to get full points. Check your answer: Price today: $29.43; Price in year 7: $36.19 Answer: Price today: Price in year 7
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