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A stock just paid a $2.50 dividend. It is expected to grow at a constant 5% per year. What dividend value should be used to

A stock just paid a $2.50 dividend. It is expected to grow at a constant 5% per year. What dividend value should be used to find today's price of the stock with a DDM?

a) $1.90

b) $2.50

c) $2.55

d) $2.63

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