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ABC Corp. announced that its next annual dividend will be $1.70 a share and all future dividends will increase by 2.5 percent annually. What is

  1. ABC Corp. announced that its next annual dividend will be $1.70 a share and all future dividends will increase by 2.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock if you require a rate of return of 12 percent?

    $15.46

    $16.94

    $17.37

    $17.89

    $13.75

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