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The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.26 per share on its stock. The dividends are expected to grow at a constant rate
| The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.26 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely. |
| Required: | |
| (a) | If investors require a 12 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? |
| (Click to select)$26.42$6.63$26.96$25.20$27.50 | |
| (b) | What will the price be in 19 years? |
| (Click to select)$97.52$99.47$23.98$91.14$95.57 |
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