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You Estimate the Following Cash Flows for Nick's Incorporated: D1=$0

Question 1

Multiple Choice

You estimate the following cash flows for Nick's Incorporated: D1=$0.83, D2=$0.87, D3=$0.96, and P3=$27.40. If the required return to hold Nick's stock is 15.1%, what is the price today for Nick's stock?


A) $18.31
B) $18.85
C) $19.98
D) $20.35

Correct Answer:

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