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The price of stock

EZee Enterprises' common stock dividend is expected to grow at 5% for the next 2 years and then at 0% indefinitely. If the current dividend is $4 and the required return is 14%, what is the price of the stock rounded to the nearest dollar?
A) $31
B) $24
C) $28
D) $41
E) $43

Solution Summary

The price of stock is figured.

$2.19