What is the difference between just paid or expected to pay

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Bavarian Sausage just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. If the required return on the stock investment is 14%, what should be the price of the stock in 5 years?

a. $18.32

b. $23.33

c. $17.44

d. $22.26

Whats the difference between just paid or expected to pay?

Reference no: EM132494493

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