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A firm that has a current stock price of $117.15 and an equity cost of capital of 10% is expected to pay a dividend of

A firm that has a current stock price of $117.15 and an equity cost of capital of 10% is expected to pay a dividend of $4.50 in one year. What price does the market expect the firm's shares to sell for immediately after it pays the dividend?

a) $124.37 b) $113.06 c) $128.87 d) $112.65 e) $121.65

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