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Use the following to answer questions 11-12: AVY paid $2.00 in dividends this past year (Div0). Analysts expect this payment will grow at 6% annually

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Use the following to answer questions 11-12: AVY paid $2.00 in dividends this past year (Div0). Analysts expect this payment will grow at 6% annually for the indefinite future. 11. What stock price is forecast with this constant-growth model if a discount rate of 10% is appropriate? A) $45 B) $53 C) $61 D) $70 hem ad b 90 A 12. What is the present value of the expected dividend in year 1? A) $2.12 B) $2.00 C) $1.93 D) $1.89

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