You are evaluating a stock that you are considering purchasing. The company paid a dividend...
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You are evaluating a stock that you are considering purchasing. The company paid a dividend of $0.75 per share in the most recent year. You anticipate that the dividend will grow at a rate of 16% for the next three years, after which it is expected to grow at a constant rate of 7%. Your required return is 11%. What is the maximum price you should pay for this stock?
A) $27.91
B) $25.35
C) $23.09
D) $22.75
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