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You have been assigned the task of valuing a company with variable growth in its dividend payments. The company will pay dividends of $0.72 in
You have been assigned the task of valuing a company with variable growth in its dividend payments. The company will pay dividends of $0.72 in exactly one year, $0.76 in two years and $0.88 in the third year. Thereafter, the company expects its dividends to grow at a constant rate of 2% per year. If the required return to hold the share is 14.6%, what should be the current stock price? Group of answer choices $6.20 $6.52
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