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Angel recently purchased a block of 100 shares of Hayley's Optical common stock for $6,000. The stock is expected to provide an annual cash flow

Angel recently purchased a block of 100 shares of Hayley's Optical common stock for $6,000.

The stock is expected to provide an annual cash flow of dividends of $400 indefinitely. Assuming a

discount rate of 8 percent, how does the price Angel paid compare to the value of the stock?

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