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Business, 18.03.2021 01:30 jayelijah0508

Alpha Company, which is growing quickly, expects to pay annual dividends of $0.55, $0.80, and $1.10 per share in Year 1, Year 2, and Year 3, respectively. After that, the dividend is expected to grow at a constant and perpetual rate of 5% per year. The dividend just paid was $0.40 per share. What is the current price of Alpha Company’s stock if the required return is 16%?

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Alpha Company, which is growing quickly, expects to pay annual dividends of $0.55, $0.80, and $1.10...
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