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A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the stock is $16.40, and the equity cost
A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the stock is $16.40, and the equity cost of capital for the company that released the shares is 6%, what price would an investor be expected to pay per share five years into thefuture?
A.
$13.33
B.
$22.66
C.
$21.33
D.
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