Media Music Inc is expected to pay an annual dividend next year of $6.25 a share, a dividend in Year 2 of $6.63, a dividend in Year 3 of $7.02, a dividend in Year 4 of $7.44, and a dividend in Year 5 of $7.89. Thereafter dividends are expected to grow at a constant rate of 2.35 percent annually. What is the price of Media Music stock given a required return of 12.5 percent?

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D1 625 D2 663 D3 702 D4 744 D5 789 D6 78... View the full answer