Homework Clinic
Social Science Clinic => Business => Finance => Topic started by: Alainaaa8 on Apr 25, 2021
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Bubble.com Inc. currently pays no dividends. You overhear the CFO tell the CEO that the plan is to begin paying annual dividends in 5 years. The first dividend will be $2 and dividends are expected to grow at 5% in perpetuity thereafter. Given a required return of 11%, what should the price of the stock be today?
◦ $19.78
◦ $20.77
◦ $21.96
◦ $24.24
◦ $24.37
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$21.96
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thank you
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Thank you
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thank you