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A stock paid a dividend of $1.5 today. The dividend is expected to grow at a constant rate of 8%, and if the required rate

A stock paid a dividend of $1.5 today. The dividend is expected to grow at a constant rate of 8%, and if the required rate of return on an investment in equity is 12%. As a rational investor and using concepts discussed, should you purchase the stock if it was trading at $55 today?

A) Yes

B) No

C) Insufficient info

D) Both B and C

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