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XanEx is a new firm that just paid an annual dividend of $1 a share. The firm plans to increase its dividend by 20 percent
XanEx is a new firm that just paid an annual dividend of $1 a share. The firm plans to increase its dividend by 20 percent a year for the next four years and then decrease the growth rate to 5 percent annually. If the required rate of return is 10.25 percent, what is one share of this stock worth today?
| a. | $33.04 |
| b. | $38.19 |
| c. | $41.05 |
| d. | $31.19 |
| e. | $34.81 |
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