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9. Fey Fashions expects the following dividend pattern over the next seven years: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
$1.00 $1.10 $1.21 $1.33 $1.46 $1.61 $1.77 Then the company will have a constant dividend of $2.00 forever. What is the price of
this stock today if an investor wants to earn a. 15%? b. 20%?

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Answer a) Price of this... View the full answer

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