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A stock is expected to pay a year-end dividend of $8 and then to sell at a price of $109. The risk-free interest rate is

A stock is expected to pay a year-end dividend of $8 and then to sell at a price of $109. The risk-free interest rate is 4%, the expected market return is 12% and the stock has a beta of 0.8. What is the stock price today?

Select one:

A. $109.00.

B. $98.73.

C. $102.99.

D. $105.98.

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