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QUESTION
Sketchy Tech Corp is expected to grow 5% per year indefinitely and pay its first dividend of $3.50 in year 4.
Sketchy Tech Corp is expected to grow 5% per year indefinitely and pay its first dividend of $3.50 in year 4. Given that investors require a 12% required rate of return, what should be the current price of the stock?
A.$50.00
B.$41
C.$35.59
D.$38.88
