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A stock with a required return of 19.6% has just announced that it will make its...

A stock with a required return of 19.6% has just announced that it will make its first dividend payment of $2 per share in four years. Afterward they plan to increase the dividend payment by 8% per year. What should be the current price of this stock?

  • A. $8.43

  • B. $17.24

  • C. $9.10

  • D. $10.08

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