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A firms last dividend was $4, and its requires rate of return is 8.5%. The dividends are expected to increase by 3% every year. How

A firms last dividend was $4, and its requires rate of return is 8.5%. The dividends are expected to increase by 3% every year. How much would you pay for its stock (round to the nearest dollar)?

a. $75

b. $73

c. $71

d. $77

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