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Zoom has had an amazing surge of popularity during the pandemic, which in turn has led the price to rise. Assume that Zoom just paid
Zoom has had an amazing surge of popularity during the pandemic, which in turn has led the price to rise. Assume that Zoom just paid a dividend of $1.00. Analysts expect the dividend to grow by 25% this year, 20% next year and then settle down to a long run growth rate of 4%. If investors require a 14% return, what price should Zoom stock trade at? Multiple Choice O $13.00 O $14.25 $14.75 O $15.25
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