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Stock Market Price and Dividend Growth

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99. A company paid a dividend of 1.30 yesterday. The next dividend will be in one year and is expected to be 1.50. After that, dividends are expected to grow at a constant 15% foreever. The discount rate for the co. is 25%. What should be the market price

17.25
15.00
13.20
13.80
18.75

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Solution Summary

The stock market price and dividend growth are determined.

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