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Business, 17.02.2020 16:41 princess239

XanEx is a new firm that just paid an annual dividend of $1 a share. The firm plans to increase its dividend by 10 percent a year for the next 4 years and then decrease the growth rate to 2 percent annually. If the required rate of return is 18.25 percent, what is one share of this stock worth today?

A. $8.05
B. $8.19
C. $11.05
D. $11.19
E. $14.81

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