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There is a small company that currently does not pay dividends. However, 4 years from now the company is expected to pay an annual dividend

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There is a small company that currently does not pay dividends. However, 4 years from now the company is expected to pay an annual dividend of $2.00 (Hint: D4-$2.00). The dividend will then grow by 5% annually forever. Suppose the market requires an annual return of 10% on the company's stocks, what should be the stock price today? A) $30.05 B) $28.69 C) $27.32 D) $31.48

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