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16) Stable Corporation currently pays a dividend of $0.50 a share. The firm's dividends are expected to grow at a constant rate of 10% indefinitely.
16) Stable Corporation currently pays a dividend of $0.50 a share. The firm's dividends are expected to grow at a constant rate of 10% indefinitely. If investors require a 15% return on Stable's stock, at what price should it sell? A) $11.50 B) $5.00 C) $10.00 D) $11.00
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