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ABC Corp has just paid its annual dividend of $1.50 per share, and it is expected that these dividend payments will continue indefinitely. The dividends

ABC Corp has just paid its annual dividend of $1.50 per share, and it is expected that these dividend payments will continue indefinitely. The dividends are not expected to grow (i.e., g=0). If ABC’s equity cost of capital is 12%, then the value of a share of ABC’s stock is closest to:

$14.50

$12.50

$16.50

$18.50

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