Finance (dividend) question: "...The company has a required rate of return of 12%. What should be the price per share of the co.'s stock at the begining of the third year, 2?"
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47. The co.'s last dividend Do, was .50 and the company expects to experience no growth for the next 2 years.
The co. will grow at an annual rate of 5% in the third and fourth years, and, beginning with the fifth year, it should attain a 10% growth rate which it will sustain thereafter. The co. has a required rate of return of 12%. What should be the price per share of the co.'s stock at the begining of the third year, 2?
19.98
25.06
31.21
19.48
27.55
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