What is the current value of a share of stock

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Reference no: EM13731922

Squidward Tentacles & Co. will pay an annual dividend of $0.65 one year from now. The dividend is expected to grow at a 12% rate for the next 4 years and then settle down to a steady growth rate of 2% per year in perpetuity. If Squidward Tentacle’s required rate of return is 8%, what is the current value of a share of stock?

$11.80

$15.07

$17.33

$18.05

$20.62

Reference no: EM13731922

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