Intelligent Corp. (IC) has paid an annual dividend of $2.00 per share ever since it was formed ten years ago. Today IC announced it will start to grow the dividend by 15% per year from now on. If IC's shareholders require a 20% return on common shares, by what percentage should IC's share price jump according to the dividend-based approach to share valuation?
A) 60%
B) 120%
C) 180%
D) 360%
E) 480%
Correct Answer:
Verified
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