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ABC Corp., a steel manufacturer, will start paying $3.50 for dividends per year beginning next year. Assuming the dividend will last forever and that the

ABC Corp., a steel manufacturer, will start paying $3.50 for dividends per year beginning next year. Assuming the dividend will last forever and that the required rate of return for the steel industry is 10.1%, what is the present value of ABC Corp.s stock price under the Dividend Discount Model?

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$35.32

$34.65

$35.35

$35.00

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