What is the current value of bandag inc to an investor who, Ask an Expert

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What is the current value of Bandag Inc. to an investor who has a required rate of return of 12%? The current dividend is $1.00 and the dividends are expected to grow 8% per year for 3 years. At the end of the 3 years the investor expects to sell the security for $76.

A. $79.51

B. $56.90

C. $51.13

D. $76.00

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Financial Management, Finance

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