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Assume Coleco pays an annual dividend of $1.48 and has a share price of $37.66. It announces that its annual dividend will increase to $1.75.

Assume Coleco pays an annual dividend of

$1.48

and has a share price of

$37.66.

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?

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