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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 $18.90, 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 $18.90, and the equity cost of capital for the company that released the shares is 6.4%, what price would an investor be expected to pay per share five years into the future?
A) $12.50
B) $20.43
C) $21.23
D) $22.65
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