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Antiquated Products Corporation produces goods that are very mature in their product life cycles. Antiquated Products Corporation is expected to pay a dividend of $1.00

Antiquated Products Corporation produces goods that are very mature in their product life cycles. Antiquated Products Corporation is expected to pay a dividend of $1.00 in year 1, a dividend of $1.13 in year 2, and a dividend of $1.25 in year 3. After year 3, dividends are expected to grow at a rate of 2% per year. An appropriate required rate of return for the stock is 10%. The stock should be worth ___.

A.

$8.98

B.

$66.87

C.

$18.72

D.

$13.67

E.

$14.76

F.

$11.97

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