Delta Company has some very exciting prospects in the near future. As a result it is expected to grow at a rate of 20% for the next year. After that it will grow at 7% indefinitely. The interest rate is currently 14% and Delta paid a dividend of $2.60 recently. What should Delta sell for today?
A) $44.59
B) $39.45
C) $48.72
D) $41.67
Correct Answer:
Verified
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