Question: A firm is expected to pay regular annual dividends. It is expected to pay a $5 dividend next year, and the dividend is projected to

A firm is expected to pay regular annual dividends. It is

A firm is expected to pay regular annual dividends. It is expected to pay a $5 dividend next year, and the dividend is projected to grow by 5% each year from then on. Its required rate of return is 15%. What is the value of the stock? (Hint: growing perpetuity) $45 $50 $55 $60

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