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43. What is the value of a stock making annual dividends, if the last dividend paid (D 0 ) was $2.00 per share, the dividends

43.

What is the value of a stock making annual dividends, if the last dividend paid (D₀) was $2.00 per share, the dividends are expected to have a growth rate (g) of 4% per year for the foreseeable future, and the discount rate (r_s) is 7%?

a. $52.00

b. $29.71

c. $66.67

d. $69.33

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