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"A young software company will pay its first dividend of $0.60 next year. This dividend...

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Finance

"A young software company will pay its first dividend of $0.60 next year. This dividend of $0.60 will grow at a rate of 10% for four years until the end of year 5. After that, the growth will slow down to 5% forever. The required rate of return is 15%. What is the price of the stock today?"

$6.98

$7.14

$7.31

$7.62

$7.97

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