What is your estimate of the current share value

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You expect firm XYZ to pay a dividend next year of $0.50, in year 2 of $0.60, and in year 3 of $0.75. If you expect the stock to sell for $35 in three years and the required rate is 10%, what is your estimate of the current share value (price per share) rounded to the nearest dime?

A. $37.50 B. $30.20 C. $27.80 D. $20.30

Reference no: EM131305051

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