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Lumber Blocks is expected to pay an annual dividend of $1.00 a share this coming year....

Lumber Blocks is expected to pay an annual dividend of $1.00 a share this coming year. They are expected to increase their dividend by 50 percent per year for the following two years and then maintain a constant dividend growth rate of 4 percent per year. What is the value of this stock today if the required return is 14 percent?
Select one:
a. $22.05
b. $17.40
c. $19.34
d. $18.69

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Expert Solution

Ans is c.$19.34

Please upvote if the ans is helpful. Thanks.

jeff jeffy answered 2 years ago
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