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Business, 15.04.2020 18:00 birdman6360

The Club Auto Parts company has just recently been organized. It is expected to experience no growth for the next 2 years as it identifies its markets and acquires inventory. However, Club will grow at an annual rate of 5% in the third year and beginning with the fourth year should attain a 10% growth rate which it will sustain thereafter. The first dividend (d1) to be paid at the end of the first year is expected to be $.50 per share. Investors require a 15% rate of return on clubs stock. What will club's stock price be at the end of the first year?a. $5.00b. $8.76c. $9.56d. $12.43e. $15.00

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