Question: Cherry Auto Sales just opened and does not expect to pay a dividend during its first year. At the end of its second year, Cherry's

Cherry Auto Sales just opened and does not expect to pay a dividend during its first year. At the end of its second year, Cherry's owners expect to pay a $2.00 dividend and plan to increase it 7% annually. If the required return is 20%, what should Cherry's stock price be? a.$11.42 b.$10.92 c.$13.06 d.$12.82 e.$15.48

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