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Trey Winger is considering an investment in Teddys Italian Restaurant. Trey Winger is planning to buy this companys common stock today, hold it for three
Trey Winger is considering an investment in Teddys Italian Restaurant. Trey Winger is planning to buy this companys common stock today, hold it for three years, and then expect to sell the stock for $40.00 at the end of the third year. Trey Winger expects the first dividend to be $1.00, the second dividend to be $1.50, and the third dividend to be $2.25. If Trey Winger requires a 17.00% rate of return, what is the value of Teddy's italian Restaurant to Trey Winger today?
$27.19
$31.75
$28.36
$29.00
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