Question: question 19 (Marks: 2) MDK. Inc. is a high growth firm that has never paid a dividend. The company iust issued a press relesse, stating
question 19 (Marks: 2) MDK. Inc. is a high growth firm that has never paid a dividend. The company iust issued a press relesse, stating that next year it plans on paying an annual dividend of 50.34. It a lio stated ithat dividends are expected to increase by 40% per year for each of the following 5 years and then inctease by 6% annually thereafter. The required rate of return for MDK. Inc. is 15%. What is MOK's expected shate price at the end of year 7. Select one: a. $11,13 b. $21.04 c $21.54 d. $22.83 e. $24.2 f. $27.83 B. $32 h. $39.82
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