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Company Rich pays $2 in dividends annually and estimates that they will pay the dividends...

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Finance

Company Rich pays $2 in dividends annually and estimates that they will pay the dividends indefinitely. This dividend is expected to grow at the rate of 1% per year. How much are investors willing to pay for the dividend with a required rate of return of 6%?

a. 2

b. 40

c. 4000

d. 33.33

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