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What is the value of this stock today at a required return

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Question - Business Services Inc. is expected to pay its first annual dividend of $0.80 per share three years from now. Starting in Year 6, the company is expected to start increasing the dividend by 2 per cent per year. What is the value of this stock today at a required return of 12%?

a. $7.47

b. $6.16

c. $6.63

d. $7.22

e. $6.47

Reference no: EM132532483

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