A stock is expected to pay its first $880 dividend in 1 year from now....
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A stock is expected to pay its first $880 dividend in 1 year from now. The dividend is expected to be paid annually forever and grow by -2% pa (note the negative sign). The discount rate is 5% pa. Estimate the current stock price. The current stock price should be: Select one: a. $17,600 b. $15,963.72 c. $13,451.43 d. $12,571.43 e. $11,402.66
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