Evaluate the current stock price

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Question 1: The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 2.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?

Select the correct answer.

Option a. $30.43

Option b. $31.20

Option c. $31.97

Option d. $29.66

Option e. $28.89

Reference no: EM132484913

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