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Medical Corporation of America (MCA) has a current stock price of $32, and its last...

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Finance

Medical Corporation of America (MCA) has a current stock price of $32, and its last dividend (D0) was $1.50. In view of MCAs strong financial position, its required rate of return is 12%. If MCAs dividends are expected to grow at a constant rate in the future, what is the firms expected stock price in five years?

Choice: $34.68

Choice: $44.86

Choice: $52.10

Choice: $68.75

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