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Find the price of a stock that pays a dividend D1 = $4, that pays a...

Find the price of a stock that pays a dividend D1 = $4, that pays a dividend D2 = $7, and that pays an $8 dividend each year after that. Assume shareholders demand a 10% expected rate of return.

a) $16.03

b) $66.12

c) $75.54

d) $89.42

e) The provided information is NOT sufficient to answer this question.

Ans: C

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