What is the stocks price if an investor wants

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Staton-Smith Software is a new start-up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $3.25 with a constant growth rate of 3%, with the first dividend at the end of year six. The company will be in business for 25 years total.

What is the stock's price if an investor wants

a. a return of 12%

b. a return of 15%

c. a return of 25%

d. a return of 40%

Reference no: EM131601505

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