(Solution) - Sudsy Inc recently paid an annual dividend of 1 00 per -(2025 Original AI-Free Solution)
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Sudsy Inc. recently paid an annual dividend of $1.00 per share. Analysts expect that amount to be paid for three years after which dividends will grow at a constant 5% per year indefinitely. The stock is currently trading at $20, and investors require a 15% return on similar issues. Has the stock market properly priced Sudsy?s stock?