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11. A stock is expected to pay dividends of $1.20 per share in Year 1 and $1.35 per share in Year 2. After that, the

11. A stock is expected to pay dividends of $1.20 per share in Year 1 and $1.35 per share in Year 2. After that, the dividend is expected to increase by 2.5% annually. What is the current value of the stock at a discount rate of 14.5%?

A. $11.29

B. $10.87

C. $12.07

D. $13.39

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