Suppose that a stock pays four annual dividends of ($50) per year and that the discount rate
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Suppose that a stock pays four annual dividends of \($50\) per year and that the discount rate (k) = 10%. Using the simple dividend discount model, what is the present value of the stock?
(A) \($125\)
(B) \($159\)
(C) \($85\)
(D) \($190\)
(E) \($65\)
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