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The Merriweather Company just announced that it will pay a dividend next year of $1.50. The company will then increase its dividend by 15 percent
The Merriweather Company just announced that it will pay a dividend next year of $1.50. The company will then increase its dividend by 15 percent per year for three years after which it will maintain a constant 5 percent dividend growth rate. What is one share worth today at a required rate of return of 11 percent?
A) $32.00
B)$28.57
C)$29.40
D)$45.63
E)$34.90
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