Suppose a firm's last dividend was $1.10 (D0) and that it will grow by 10...
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Suppose a firm's last dividend was $1.10 (D0) and that it will grow by 10 cents per year over the next three years (years 1 to 3). After that, the firm's dividends are expected to grow at a constant 4.00 percent per year. What should the current price of the firm's stock (P0) be today if investors require a rate of return of 11.00 percent on the stock? (Do not round intermediate calculations. Round final answer to 2 decimals)
A. $18.37
B. $16.74
C. $24.12
D. $17.04
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