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The current price of a stock is $90.48. If dividends are expected to be $1.20 per share for the next five years, and the required
The current price of a stock is $90.48. If dividends are expected to be $1.20 per share for the next five years, and the required return is 7%, then what should the price of the stock be in 5 years when you plan to sell it? The price 5 years from now will be $1. (Round your response to the nearest dollar.) If the dividend and required return remain the same, and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1? O A. Yes, the current stock price will increase by $1 because the current stock price should not be discounted by the required return. OB. No, the current stock price will not increase by $1 because the future stock price is discounted by the required return. OC. The answer is uncertain as stock prices can be very unpredictable
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