According to the discounted dividend model

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An annual dividend of $8.00 was just paid by Smart Consulting. The required return on Smart Consulting's stock is 11.25%. If dividends are expected to grow annually at 2.55% at what price should Smart Consulting's stock be selling according to the discounted dividend model?

  • $91.95
  • $94.30
  • $91.11
  • $72.92

Reference no: EM131253029

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