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Assume that you are considering the purchase of a stock which will pay dividends of $4.50 during the next year. Further assume that you will

Assume that you are considering the purchase of a stock which will pay dividends of $4.50 during the next year. Further assume that you will be able to sell the stock for $100 one year from today and that your required rate of return is 15 percent. How much would you be willing to pay for the stock today?

$94.10

$95.37

$90.87

$77.8

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