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1 3 . Company X has 2 5 0 shares outstanding. It earns $ 1 , 0 0 0 per year and expects to pay

13. Company X has 250 shares outstanding. It earns $1,000 per year and expects to pay all of it as dividends. If the firm expects to maintain this dividend forever, calculate the stock price before the dividend payment. (The required rate of return is 10 percent.)
a. $110
b. $90
c. $44
d.$40

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