What is expected price of the stock

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Reference no: EM131616115

AWE INC's divdend growth rate is expected to be 20% per year for the next 3 years and zero percent afterwards. The last divdend, D0 was $1 and the beta of the stock is 1. The market risk premium is 8%, and the risk-free rate is 2%. What is the expected price of the stock?

a. $18.81

b. $20.77

c. $17.76

d. $19.98

e. $16.56

Reference no: EM131616115

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