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IBM is expected to pay a dividend at the end of next year in the amount of $3.54 per share.
The dividends should continue to grow at a rate of 8.70%
The required rate of return on the stock is 11.75%.
What is the expected future price of IBM as of the end of Year 4?
| | a. | $176.14 |
| | b. | $116.07 |
| | c. | $126.40 |
| | d. | $162.04 |
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