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Macaroni Inc

Question 65

Multiple Choice

Macaroni Inc.announced that it would pay the following dividends over the next five years: $0.50, $0.75, $1.50, $3, and $4.Afterwards, dividends will decline at a rate of 3% per year indefinitely.What is the firm's current share price if the required rate of return is 13%?


A) $30.33
B) $24.25
C) $19.25
D) $17.73

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