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Virtual Travel's stock announced that the next dividend is going to be $2.00. The dividend is expected to grow by 15% in year 2 and
Virtual Travel's stock announced that the next dividend is going to be $2.00. The dividend is expected to grow by 15% in year 2 and 10% in year 3, and thereafter grow at a constant rate of 5% forever. If the required return for the stock is 12%, what is the maximum that you would be willing to pay for this stock today? Select one: A. $44.78 B. $37.95 C. $32.43 D. $29.54 E. $36.32
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