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The next three annual dividends paid by XYZ stock are expected to be $7.43 in one year, $2.79 in two years, and $3.05 in three
The next three annual dividends paid by XYZ stock are expected to be $7.43 in one year, $2.79 in two years, and $3.05 in three years. The price of the stock is expected to be $45.78 in two years. The expected annual return for the stock is 15.20 percent. What is the current price of one share of XYZ stock? a. $43.05 (plus or minus $0.05) b. $45.01 (plus or minus $0.05) c. $40.46 (plus or minus $0.05) d. $42.52 (plus or minus $0.05) e. None of the above is within $0.05 of the correct answer
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