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Combined Communications is a new firm in a rapidly growing industry. The company is planning on...

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Finance

Combined Communications is a new firm in a rapidly growingindustry. The company is planning on increasing its annual dividendby 24 percent a year for the next 4 years and then decreasing thegrowth rate to 4 percent per year. The company just paid its annualdividend in the amount of $1.10 per share. What is the currentvalue of one share of this stock if the required rate of return is8.50 percent?

A. $41.75

B. $49.58

C. $46.86

D. $35.23

E. $38.82

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Combined Communications is a new firm in a rapidly growingindustry. The company is planning on increasing its annual dividendby 24 percent a year for the next 4 years and then decreasing thegrowth rate to 4 percent per year. The company just paid its annualdividend in the amount of $1.10 per share. What is the currentvalue of one share of this stock if the required rate of return is8.50 percent?A. $41.75B. $49.58C. $46.86D. $35.23E. $38.82

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