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The recent successful development of the new space travel technology allows the Ferengi Alliance to generously reward its shareholders: the dividends will increase by 50%
The recent successful development of the new space travel technology allows the Ferengi Alliance to generously reward its shareholders: the dividends will increase by 50% in one year and by 40% in two years. After that, the dividends will increase at a rate of 5% indefinitely. If the required rate of return is 37%, what is the Alliance's current share price? The last dividend paid by the Alliance was $0.5. A. $1.63 B. $1.82 C. $49.77 D. $2.94 E. $8.12
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