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Author Question: Allston Inc. just paid an annual dividend of $1.00. The expected dividend next year $1.50, and the ... (Read 50 times)

sbegs

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Allston Inc. just paid an annual dividend of $1.00. The expected dividend next year $1.50, and the year after that, $2.00.  After the third year, dividends will grow at a constant rate of 5% per year.  If your required rate of return for Allston is 10%, what is the most you should pay for this stock.
◦ $31.05
◦ $36.73
◦ $37.73
◦ $45.50


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Marked as best answer by sbegs on Mar 29, 2022

hiyayyay

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sbegs

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Reply 2 on: Mar 29, 2022
Excellent


miss.ashley

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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