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What is the best estimate of the current stock price

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Question - 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?

a. $43.98

b. $42.72

c. $43.35

d. $42.09

e. $44.61

Reference no: EM133102566

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