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Zoomers Inc. paid an annual dividend of $1.20 yesterday. If future dividends are expected to...

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Question

Accounting

Zoomers Inc. paid an annual dividend of $1.20 yesterday. If future dividends are expected to grow at a rate of 9 percent, and the required rate of return on this stock is 15 percent, the fair price of this stock today is:

a.

$15.48
b.

$24.15
c.

$21.80
d.

$20.00
e.

None of the above

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