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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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