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7) Praetorian Industries will pay a dividend of $2.50 per share this year and has an equity cost of capital of 8%. Praetorian's stock is

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7) Praetorian Industries will pay a dividend of $2.50 per share this year and has an equity cost of capital of 8%. Praetorian's stock is currently trading at $84 per share. By comparing Praetorian with similar rms, an investor expects that its dividends will grow by up to 5% per year. What is the best next step that the investor should take regarding Praetorian's stock? A) Revise Praetorian's equity cost of capital. B) Sell any Praetorian stock that she owns. C) Revise her estimate of Praetorian's dividend growth. D) Short Praetorian's stocl<

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