A firm expects to pay dividends at the end of each of the


A firm expects to pay dividends at the end of each of the next for years at $2, $1.50, $2.5 and $3.5. After year 4 growth is expected to be constant at 8%. If you require a 14% rate of return how much should you be willing to pay for this stock? a. $58.15 b. 43.97 c. 31.00 d. 67.81 e. 22.49

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Financial Management: A firm expects to pay dividends at the end of each of the
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