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A stock pays a constant $10 dividend per year in perpetuity and has an 8% required return. What is the current price of this stock?

  1. A stock pays a constant $10 dividend per year in perpetuity and has an 8% required return. What is the current price of this stock?
    1. $25
    2. $125
    3. $36.36
    4. There is no way to determine the price of the stock

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