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IBM is expected to pay a dividend at the end of next year in the...

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Finance

IBM is expected to pay a dividend at the end of next year in the amount of $3.54 per share.

The dividends should continue to grow at a rate of 8.70%

The required rate of return on the stock is 11.75%.

What is the expected future price of IBM as of the end of Year 4?

a.

$176.14
b.

$116.07
c.

$126.40
d.

$162.04

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