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The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning to start paying dividends. The initial dividend is
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning to start paying dividends. The initial dividend is to be paid in one year in the amount of $.63 a share. The dividends to be paid over each of the next three years are $.68, $.83, and $1.13 respectively. After this time, dividends are expected to grow by 4.1 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 15 percent? Multiple Choice $8.42 O $11.42 o $2.11 O $11.23 $10.79
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