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Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10, but management expects to reduce the payout by 6

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10, but management expects to reduce the payout by 6 percent per year indefinitely.

If you require a return of 15 percent on this stock, what will you pay for a share today?

Multiple Choice

  • $44.76

  • $45.21

  • $47.62

  • $104.44

  • $44.31

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