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The Station Company has been hit hard due to increased competition. The company s analysts predict that earnings ( and dividends ) will decline at

The Station Company has been hit hard due to increased competition. The companys analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually from now on. k =14% and D0= $2.00. What will be the estimated price of the companys stock four years from now (this will be the price at the beginning of year 5)? Round all calculations to two places.
A. $27.17
B. $11.11
C. $28.50
D. $10.18
E. $8.16

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