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Whispering Natural Foods' current dividend is $4.00. You expect the growth rate to be 0% for years 1 to 5, and 1% for years 6 to infinity. The required rate of return on this firm's equity is 11%. A. Determine the expected dividend at the end of year 5. B. Determine the expected dividend at the end of year 6. C. Determine the expected price of the stock at the end of year 5 (after the year 5 dividend). D. Determine the price of the stock today.
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