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Huang Company's Last Dividend Was $1

Question 14

Multiple Choice

Huang Company's last dividend was $1.25.The dividend growth rate is expected to be constant at 27.5% for 3 years,after which dividends are expected to grow at a rate of 6% forever.If the firm's required return (rs) is 11%,what is its current stock price? Do not round intermediate calculations.


A) $41.08
B) $40.63
C) $36.11
D) $45.14
E) $52.36

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