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The Black Forest Cake company just paid an annual dividend of $9.74. If you expect a constant growth rate at a rate of 3.20, and
The Black Forest Cake company just paid an annual dividend of $9.74. If you expect a constant growth rate at a rate of 3.20, and have a required rate of return of return of 10.84 percent, what is the current stock price according to the constant growth dividend model? Correct answer is $131.57. Please explain and show work. I received incorrect answer.
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