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SQT, Inc. currently pays a $2 annual dividend. Investors believe that dividends will grow at...

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Question

Finance

SQT, Inc. currently pays a $2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% for the following year, and 6% annually thereafter. The required return is 10%. What is the current price of the stock?

A.

$69.34

B.

$63.27

C.

$60.80

D.

$54.90

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