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A common stock pays annual dividends of $3 per share in perpetuity. The discount rate is 10%. Which of the following is the value of
A common stock pays annual dividends of $3 per share in perpetuity. The discount rate is 10%. Which of the following is the value of the stock today?
a. | 42 | |
b. | 31 | |
c. | 40 | |
d. | 30 |
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