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The Last Annual Dividend Paid by New Technologies Was $1

Question 37

Multiple Choice

The last annual dividend paid by New Technologies was $1.40 a share. Dividends for the next 3 years will be increased at an annual rate of 8 percent. After that, dividends are expected to increase by 3 percent each year. The discount rate is 16 percent. What is the current value of this stock?


A) $10.40
B) $12.60
C) $13.33
D) $14.10
E) $15.55

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