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ABC Corp presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If ABC's equity

  1. ABC Corp presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If ABC's equity cost of capital is 12%, then the value of a share of ABC's stock is:
  2. $18.50
  3. $16.50
  4. $14.50
  5. $12.50

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