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A stock just paid a dividend of D 0 = $1.50. The required rate of return is r s = 8.0%, and the constant growth

A stock just paid a dividend of D₀ = $1.50. The required rate of return is r_s = 8.0%, and the constant growth rate is g = 4.0%. What is the current stock price?

Select the correct answer.

a. $39.27

b. $39.00

c. $38.19

d. $38.46

e. $38.73

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