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The common stock of NCP paid $6 dividend last year. Dividends of the company are expected to grow at a 5 percent annual rate indefinitely.
The common stock of NCP paid $6 dividend last year. Dividends of the company are expected to grow at a 5 percent annual rate indefinitely. Assume that the stock is currently selling for $50 and that your required rate of return is 15 percent. What is the value of the stock to you?
| $83 |
| $63 |
| $50 |
| $103 |
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