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Mario's Is Going to Pay $1,$2

Question 16

Multiple Choice

Mario's is going to pay $1,$2.65,and $4 a share over the next 3 years,respectively.After that,the company plans to pay annual dividends of $1.65 per share indefinitely.If your required return is 14 percent,how much are you willing to pay for one share today?


A) $12.74
B) $14.02
C) $12.90
D) $13.57
E) $13.67

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