Baldwin Corp just paid a dividend of $2.00. Over the next two years, this dividend is expected to growth by 20% per year. After two years, dividend growth is expected to level off at 10%

If the required rate of return on Baldwin stock is 12%, what should be the price of Baldwin stock today?
A) $130.72
B) $128.57
C) $158.40
D) $31.68
E) $163.68


A

Business

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