What is the current value of one share

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The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. The company just paid its annual dividend in the amount of $1.90 per share.

What is the current value of one share of this stock if the required rate of return is 7.40 percent?

Multiple Choice:

A. $99.38

B. $116.55

C. $118.45

D. $97.48

E. $87.59

Reference no: EM132557306

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