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YourFavoriteProblem will pay $9, $7, $4, and $2 as per-share dividends in Years 1, 2, 3, and 4, respectively. After that the company will be

YourFavoriteProblem will pay $9, $7, $4, and $2 as per-share dividends in Years 1, 2, 3, and 4, respectively. After that the company will be increasing its annual dividend by 7 percent every year, in perpetuity.

The appropriate discount rate for this stock is 17 percent. Calculate the current stock share price.

Multiple Choice

A-$27.79

B-$28.62

C-$36.13

D-$26.40

E-$27.22

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