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Big Falls Tours Just Paid a Dividend of $1

Question 103

Multiple Choice

Big Falls Tours just paid a dividend of $1.55 per share.The dividends are expected to grow at 30 percent for the next 8 years and then level off to a 6 percent growth rate indefinitely.What is the price of this stock today given a required return of 15 percent?


A) $67.54
B) $69.90
C) $70.47
D) $71.07
E) $78.19

Correct Answer:

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