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A stock expects to pay a year-end dividend of $2.00 a share (i.e. , D1 = $2.00; assume that last years dividend has already been paid). The dividend is expected to fall 5% a year, forever (i.e. g = -5%). The companys expected and required rate of return is 15%. Which of the following statements is most correct? A. The companys stock price is $10 B. The companys expected dividend yield 5 years from now will be 20%. C. The companys stock price 5 years from now is expected to be $7.74 D. Both answers b and c are correct. E. All of the above answers are correct.

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