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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 25% 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. $41.58

b. $42.64

c. $43.71

d. $44.80

e. $45.92

Reference no: EM133128295

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