What is the value of the stock to an investor

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New age inc. paid a dividend yesterday of $2.00 per share, new age management expects the dividend to increase next year to $3.00 annually. if the dividend is expected to stay at $3.00 per yera for the foreseeable future, what is the value of the stock to an investor with a required rate of return of 10%?

a- $50.00
b- $30.00
c- $32.00
d- $7.50

 

Reference no: EM13298217

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