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A stock just paid dividends of $2.0 per share and dividends are expected to rise 15%, 12%, and 10% for the next 3 years. Starting in the 4th year, the dividend growth will stay at a constant growth rate of 5%. If the required rate of return on this stock is 12%, what is its intrinsic value?

a.$50.21

b. $48.63

c. $36.38

d. $33.14

e. $32.86

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Financial Management, Finance

Category:- Financial Management
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