Suppose Microsoft Co. will pay a dividend of $3 per share one year from now...
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Suppose Microsoft Co. will pay a dividend of $3 per share one year from now (year 1), and $6 per share two years from now (year 2). After then (in other words, after the second year) dividends will grow at 9% per year forever. If the firm's equity cost of capital is 12%, what is their current price per share? $ 162.63 $218.00 $7.46 $181.25
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