The growth in dividends of Music Doctors, Inc.is expected to be 8% per year for the next two years, followed by a growth rate of 4% per year for three years; after this five-year period, the growth in dividends is expected to be 3% per year, indefinitely.The required rate of return on Music Doctors, Inc.is 11%.Last year's dividends per share were $2.75.What should the stock sell for today
A) $8.99
B) $25.21
C) $39.71
D) $110.00
E) None of the options
Correct Answer:
Verified
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