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Using the dividend discount model, what is the approximate market value of a stock that is expected to pay a dividend of $4 exactly 1
Using the dividend discount model, what is the approximate market value of a stock that is expected to pay a dividend of $4 exactly 1 year from today if the investors' required return is 12% and the dividends are expected to decline at a rate of 8% a year going forward due to declining sales in the industry?
Group of answer choices
$16
Either more than $100 or less than $16
$100
$50
$20
$33.33
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