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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 ABCs equity

ABC Corp presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If ABCs equity cost of capital is 12%, then the value of a share of ABCs stock is closest to

A. $12.50

B. $16.50

C. $18.50

D. None of the above

E. $14.50

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