F Minus Notes is a publicly traded company. The last dividend paid was $4 per share. Dividends are paid annually, and they are expected to increase 5 percent per year for the next five years, then increase 10 percent per year thereafter. The discount rate associated with F Minus Notes common stock is 20 percent. What should be the current price of F Minus Notes stock?
a. $36.21
b. $33.13
c. $47.55
d. $50.72
e. $31.59
a
Business
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