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03-06-2023
Business

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Cream City Inc. will not pay a dividend for the first six years. Seven years from today, the company is expected to pay a dividend of $8 per share (that is, D 7

=8 ). This dividend is expected to grow at 2% per year forever. The required rate of return on Cream City Inc.'s stock is 10%. The stock should sell for $… today (that is, at t=0 ). 51.25
56.45
59.77
61.22

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