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You feel that Stock C will be able to grow its dividend by 10% per year over the next two years, after which time the

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You feel that Stock C will be able to grow its dividend by 10% per year over the next two years, after which time the growth rate will drop to 2.5% and then stay at 2.5% forever. The required rate of return on Stock C is 11%. You expect next year's dividend (to be paid one year from today) to be $0.30 per share. According to your expectations, what price should Stock C be selling for right now? Select one: $4.14 $4.29 $4.22 $3.77 $3.45 $3.53

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