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A company just paid out an annual dividend of $2. If the annual dividend is maintained at the same level for the next 10 years,
A company just paid out an annual dividend of $2. If the annual dividend is maintained at the same level for the next 10 years, and the firm will never pay any more dividends, what should be the price of a share today? Assume that the required rate of return for the stock is 15%.
Group of answer choices
$20.00
$10.04
Cannot be determined
$11.54
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