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Price of a one share of corporation

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Reference no: EM132390712

Adel Sera has just distributed $1 dividend per share. The dividend will grow at 180 percent next year.  After that point, the dividend will grow at a stable rate of 5 indefinitely. If the investors' required rate of return is 12 percent what should be the price of a one share of this corporation?

A) $35.71

B) $25.71

C) $40

D) $23.33

Reference no: EM132390712

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