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19. You are considering buying some preferred stock in a company. The last annual dividend (just paid) was $2.50. You expect the dividend to increase

19. You are considering buying some preferred stock in a company. The last annual dividend (just paid) was $2.50. You expect the dividend to increase at a rate of 2.0% per year indefinitely. What is the most you should be willing to pay for this stock if your discount rate is 8%?

A. $42.50

B. $41.67

C. $31.88

D. $31.25

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