# A stock is expected to pay a dividend of \$1.99 at the end of the year. The required rate of return is rs = 13.82%, and the expected constant growth rate is g = 8.0%. What is the stock's current price?Round your answer to two decimal places. For example, if your answer is \$345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.A. \$39.61B. \$29.71C. \$34.14D. \$42.68E. \$35.51

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A stock is expected to pay a dividend of \$1.99 at the end of the year. The required rate of return is rs = 13.82%, and the expected constant growth rate is g = 8.0%. What is the stock's current price?

A. \$39.61
B. \$29.71
C. \$34.14
D. \$42.68
E. \$35.51
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Step 1

As per the  dividend discount model , the value of the company stock is the...

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