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Based on the following information on EBE common stock, what is the expected price today?

Last dividend per share: $5

Growth rate: 20% per year for years 1 through 3; 10% per year for the years 4 to infinity

Required rate of return for the stock: 20%

a. $81.09

b. $69.98

c. $61.75

d. $75.77

e. $55.21

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92424830

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