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What should a share of stock sell for today

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Question - Wisconsin Widgets Inc. has been performing well lately. Analysts believe that the company's earnings (and dividends) will grow at a rate of 15 percent each year into the foreseeable future. Next year's dividend is expected to be $5.00 per share. If the required rate of return on the stock is 20 percent, what should a share of stock sell for today?

A. $100

B. $115

C. $125

D. $140

E. $165

Reference no: EM132754523

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