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A stock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he
A stock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires 12 percent return on equity investments?
(a)$38
(b)$33.50
(c)$34.50
(d) $33.93
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