The dividend is expected to increase by 2 percent annually, Financial Management

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The dividend is expected to increase by 2 percent annually

Lew s Tours is just about to pay an annual dividend of $1.20 a share. The dividend is expected to increase by 2 percent annually and the applicable discount rate is 13 percent.

Which one of these is the correct formula for computing the current value of this stock?

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Financial Management: The dividend is expected to increase by 2 percent annually

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Financial Management: The dividend is expected to increase by 2 percent annually

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