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A share of stock in the local fast food restaurant chain will pay a next dividend in the amount of $1.50. It is expected that
A share of stock in the local fast food restaurant chain will pay a next dividend in the amount of $1.50. It is expected that dividends paid for stocks from this restaurant will grow by 1% per year. The appropriate discount rate for stocks of this type is 6%.
What is the per share value of this stock?
a. $22.75
b. $37.50
c. $30.00
d. $45.25
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