The required return on this low-risk stock is 900 what is

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Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value? why?

A.

$41.59


B.

$42.65


C.

$43.75


D.

$44.87


E.

$45.99

Reference no: EM13570592

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