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There is a small company that currently does not pay dividends. However, 3 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, 3 years from now the company is expected to pay an annual dividend of $3.00 (Hint: D3=$3.00). The dividend will then grow by 2% annually forever. Suppose the market requires an annual return of 6% on the company's stocks, what should be the stock price today? OA) $50.00 B) $44.50 OC) $75.00 D) $66.75 Question 13 (3.3 points) Sue bought 150 shares of a stock at $20 per share six months ago. She received one dividend of $1 per share. The share price right now is $17 per share. What is her total dollar return? OA) $2 OB) -$2 OC) -$300 D) $300

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