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Winter Time Adventures just paid dividend $2 per share and is expected to increase dividends by 10% in three years. After that, dividend payment policy
Winter Time Adventures just paid dividend $2 per share and is expected to increase dividends by 10% in three years. After that, dividend payment policy of the company is unknown. Assume that the PE ratio and EPS for year 3 are forecasted to be 8 and $6 respectively. If the required return is 20%, what is the price of the stock?
| A. | $30.83 | |
| B. | $31.85 | |
| C. | $34.83 | |
| D. | $32.83 | |
| E. | $35.83 |
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