The bell weather co is a new firm in a rapidly growing


The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. The company just paid its annual dividend in the amount of $2.30 per share. What is the current value of one share of this stock if the required rate of return is 7.80 percent?

A. $113.97

B. $97.79

C. $84.40

D. $116.27

E. $95.49

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Financial Management: The bell weather co is a new firm in a rapidly growing
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