Diversification Applications in Portfolio Management

Womack Toy Company’s stock is currently trading at $10 per share. The stock’s dividend is projected to increase at a constant rate of 7 percent per year. What is the expected price of the stock 4 years from today? a. $10.00. b. $13.11. c. $10.70. d. $12.77. e. $10.63. The price will appreciate at the dividend growth rate, so after 4 years ... ................
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