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The HiTop Company is expected to pay a dividend of $1.50 in three years. The current stock price is $22 per share. You believe that

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The HiTop Company is expected to pay a dividend of $1.50 in three years. The current stock price is $22 per share. You believe that the dividends of HiTop will grow at a rate of 5% per year thereafter forever. If the required rate of return for HiTop is 11.25%, then: (Note: please retain at least 4 decimal places in your calculations and at least 2 decimal places in your final answer.) Select one: O a. You should not buy the stock because you believe that the value of the stock will rise to $24 O b. 5% perpetual growth is very good and therefore you should by the stock O c. You should buy the stock because you believe that the value of the stock will fall to $19.39 O d. You should buy the stock because you believe that the value of the stock will rise to $24 O e. You should not buy the stock because you believe that the value of the stock will fall to $19.39

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