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A Corporation will pay a dividend of $34.42 per share next year. The company pledges to increase its dividend by 1.25 percent per year, indefinitely.

A Corporation will pay a dividend of $34.42 per share next year. The company pledges to increase its dividend by 1.25 percent per year, indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the companys stock today?

Select one:

a. $320.19

b. $69.75

c. $380.12

d. $220.41

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