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A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $3 per share. The dividend is expected to
A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $3 per share. The dividend is expected to grow at a constant rate of 5% per year. The stocks required rate of return is 11%. What would be a price for this stock? Choice: $32.25 Choice: $37.50 Choice: $43.10 Choice: $52.50
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