What will be the price of the company stock three years

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Question - Blue Co. has been in the difficult times due to pandemic. The company's analysts predict that earnings and dividends will decline at a rate constant rate of 5% annually. Assume that cost of stock is 11% and dividend to be declared one year from now is P2.00. What will be the price of the company's stock three years from today?

A. P10.18

B. P12.50

C. P10.10

D. P10.78

Reference no: EM133059297

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