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Assume Coleco pays an annual dividend of $ 1 . 5 0 and has a share price of $ 3 7 . 5 0 .

Assume Coleco pays an annual dividend of $1.50 and has a share price of $37.50. It announces
that its annual dividend will increase to $1.75. If its dividend yield stays the same, what should be its
new share price?
The new price will be $.(Round to the nearest cent.)
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