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A firm has a steady growth rate of 5% per year in its dividend and this growth rate is expected to continue indefinitely. Last years

A firm has a steady growth rate of 5% per year in its dividend and this growth rate is expected to continue indefinitely. Last years dividend was $1.20. If the investor requires a 9% return, what is the value of this stock?

a. $30.00

b. $31.50

c. $31.80

d. $32.40

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