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A stock just paid a dividend of D 0 = $1.50. The required rate of return is r s = 15.5%, and the constant growth

A stock just paid a dividend of D₀ = $1.50. The required rate of return is r_s = 15.5%, and the constant growth rate is g = 4.0%. What is the current stock price?

Select the correct answer.

a. $12.38

b. $13.57

c. $11.19

d. $15.95

e. $14.76

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