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    Current stock price

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    43 Regardless of your work above, assume that D0, which was just paid, = $1.00, D1= $1.20, D2 = = $1.40, D3 = $1.55, D4 = $2.00, D5 = $2.13, D6 = $2.27, and P3 = $80.00. What should be the stock's expected price today, (i.e.. P0)? I encourage you to draw a time line clearly indicating the situation. Again, assume the required return is 8.6 percent.
    a. 87.15
    b 65.96
    c. 66.96
    d. 79.14
    e. 68.4

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    https://brainmass.com/business/finance/current-stock-price-264983

    Solution Preview

    The price of the stock is the present value of all dividends. In this case we are given the ...

    Solution Summary

    The solution explains how to calculate the current stock price

    $2.19

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