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A firm is expected to produce a constant annual rate of dividend growth of 6 percent. The most recent dividend to be paid was $2.70.

A firm is expected to produce a constant annual rate of dividend growth of 6 percent. The most recent dividend to be paid was $2.70. An investor has a 13 percent required return on this investment. The value of a share of the firm's common stock is ________.

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$40.89

$35.78

$46.37

$33.75

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