1. Angelo Company just paid a dividend of $2.00 (DO). It expected to increase by 12%...

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1. Angelo Company just paid a dividend of $2.00 (DO). It expected to increase by 12% per year for the next two years. Growth will slow down to 8% per year for the following three years, and finally slow to a 5% per year thereafter. Your required rate of return is 25%, how much you are willing to pay for this stock? (Chapter 7, slide 21-26 provides similar example). a. $13.990 b. $13.705 c. $13.217 d. $12.004 e. $12.456 1. Angelo Company just paid a dividend of $2.00 (DO). It expected to increase by 12% per year for the next two years. Growth will slow down to 8% per year for the following three years, and finally slow to a 5% per year thereafter. Your required rate of return is 25%, how much you are willing to pay for this stock? (Chapter 7, slide 21-26 provides similar example). a. $13.990 b. $13.705 c. $13.217 d. $12.004 e. $12.456

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12456 should be the correct answer D0 200 D1 200 D2 200 D3 200 D The growth ra... View the full answer