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3. What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a

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3. What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a dividend of $1.36 per year? The next dividend will be paid in exactly 1 year. The required rate of return is 12.5% a) $9.67 b) $10.88 e) $13.24 d) $17.00

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