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A firm will pay a dividend of $1 per share each year for all the future years. Suppose the cost of equity for the firm

A firm will pay a dividend of $1 per share each year for all the future years. Suppose the cost of equity for the firm is 10% and the weighted average cost of capital is 8%. What should be the estimated fundamental value using discounted dividend model?

Select one:

a. $12.5 per share

b. $25 per share

c. $10 per share

d. $50 per share

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