New firm in rapidly growing industry

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Reference no: EM13917506

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $2.60 per share. What is the current value of one share of this stock if the required rate of return is 8.10 percent?

$93.01

$107.90

$105.30

$77.11

$90.41

Reference no: EM13917506

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