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8. You consider investing in a common stock. The company issuing the stock recently paid an annual dividend of S2 per share. It is expected

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8. You consider investing in a common stock. The company issuing the stock recently paid an annual dividend of S2 per share. It is expected that dividends will grow 5% per year indefinitely. Your required rate of return (cost of common stock) to invest is 12%. What is the most you should be willing to pay per share for this stock according to the dividend discount model? a $2 b. $10 c. $20 d. $30

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