How much will one share of the stock be worth eight years

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Problem 1: LOVELY Co. just announced it is increasing its annual dividend to P1.18 next year and establishing a policy whereby the dividend will increase by 3.25% annually thereafter. How much will one share of this stock be worth 8 years from now if the required rate of return is 9.5 %?

a. P24.38

b. P25.68

c. P26.51

d. P27.37

e. can't be determined

Reference no: EM132935617

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