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An investor expects earnings from a stock to grow at a constant rate of 3% over time and the investors' rate of discount is constant

An investor expects earnings from a stock to grow at a constant rate of 3% over time and the investors' rate of discount is constant at 4%. If earnings last year were $152, then the fundamental value of the stock would be

a. $15,656.

b. $1,520.

c. $12,477

d. $152.

e. $190.

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