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A firm just paid a dividend of $0.50 per share. Dividends are expected to grow...

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Finance

A firm just paid a dividend of $0.50 per share. Dividends are expected to grow at a constant rate of 8% per year forever and similar investments are yielding an 11% rate of return. The most you should be willing to pay for this stock today is__?

  • $14.15

  • $16.67

  • $18.00

  • $13.88

  • $13.55

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