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The Drew Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in
The Drew Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 6% per year. An appropriate required return for the stock is 12%. Using the multistage DDM, the stock should be worth ________ today.
Select one:
A. $57.32
B. $85.60
C. $67.95
D. $65.13
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