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Question
Suppose MBI Co.recently paid $2 annual dividend. The company is projecting that its dividends will grow by 20 percent next year, 12 percent annually for the two years after that, and then at 6 percent annually. Based on this information, how much should the company's common stock sell for today if the required return is 10.5%?a. $50.90
b. $59.22
c. $66.60
d. $77.50
Answer
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Related questions
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