Find the price of a stock that pays a dividend D1 = $4, that pays...
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Finance
Find the price of a stock that pays a dividend D1 = $4, that pays a dividend D2 = $7, and that pays an $8 dividend each year after that. Assume shareholders demand a 10% expected rate of return.
a) $16.03
b) $66.12
c) $75.54
d) $89.42
e) The provided information is NOT sufficient to answer this question.
Ans: C
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