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A share of common stock is more difficult to value in practice than a bond. The cash flow from owning a share of stock comes
A share of common stock is more difficult to value in practice than a bond. The cash flow from owning a share of stock comes in the form of future dividends. Today, The Company paid a cash dividend of $1 per share. Investors require an 8 percent return from investments such as this. If the dividend is expected to grow at a steady 4 percent per year, what is the current value of the stock? Group of answer choices $25. $26. $27. $52
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