3. Dividend Discount Model (LO1, CFA4) A common stock pays an annual dividend per share of $2.10....
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3. Dividend Discount Model (LO1, CFA4) A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7 percent and the risk premium for this stock is 4 percent. If the annual dividend is expected to remain at $2.10, the value of the stock is closest to:
a. $19.09
b. $30.00
c. $52.50
d. $70.00
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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