Answered

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Medical Corporation of America (MCA) has a current stock price of $36, and its last dividend (D0) was $2.40. Given MCA's strong financial position, its required rate of return is 12%. If MCA's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in five years?

a. $43.22
b. $45.95
c. $52.10
d. $68.75

Sagot :

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