Calculate what the stock of a toy company

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Question - Calculate what the stock of a toy company by the name of Peter Rabbit Union should be selling for if the company just paid $4.70 per share in dividends, and the dividends are expected to grow at a constant growth rate of 6.3% per year forever. The required rate of return is 16.4%.

a. $54.65

b. $49.47

c. $43.60

d. $29.61

e. $22.01

Reference no: EM133087953

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