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A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year. Financial analysts believe the stock will be at their target price of $75.00 in two years. Compute the value of this stock with a required return of 10 percent.
a. $79.14
b. $65.40
c. $65.57
d. $66.67
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A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year. Financial anal...
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