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Anthony Walker is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Anthony is
Anthony Walker is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Anthony is attracted by the dividend income. Last year the bank paid a dividend of $5.85. If Anthony requires a return of 12.0 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank's stock?
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