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Find what is the best estimate of the current stock price

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Reference no: EM132954282

Problem 1: Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 27.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?

Select the correct answer.

a. $45.96

b. $43.98

c. $42.99

d. $42.00

e. $44.97

Reference no: EM132954282

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