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XYZ Corporation just paid a dividend of $2.00 a share (that is, Do = $2.00). The dividend is expected to grow at 5% per year
XYZ Corporation just paid a dividend of $2.00 a share (that is, Do = $2.00). The dividend is expected to grow at 5% per year for the next 2 years and then at 3% per year thereafter. Assume the required rate of return on this stock is 10%. What is the stock price at t=0 (PO)? (Do not round intermediate calculations, round to two decimals in your final answers.) $31.07 a. b. $30.55 $22.86 Oc. d. $29.76
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