After thorough research, you conclude that Gore Inc.'s dividend will grow at its present rate...
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After thorough research, you conclude that Gore Inc.'s dividend will grow at its present rate of 10% for 2 more years. After the payment in year two, the growth rate in dividends will drop to 3% permanently. The last dividend (which was just paid) was $1.50. If the required rate of return is 8%, what is the current value of the stock?
a. $36.64
b. $34.15
c. $37.95
d. $35.14
e. None of the above answers are correct.
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