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Question
Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?a. $41.58
b. $42.64
c. $43.71
d. $44.80
e. $45.92
Answer
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