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Value of Dividends and Future Price a Firm Is Expected

Question 96

Multiple Choice

Value of Dividends and Future Price A firm is expected to pay a dividend of $3.00 next year and $3.21 the following year.Financial analysts believe the stock will be at their target price of $80.00 in two years.Compute the value of this stock with a required return of 13 percent.


A) $50.00
B) $67.52
C) $67.82
D) $86.21

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