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Banya, Inc., has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the dividend

Banya, Inc., has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 8% per year, what is the current value of the stock? a. $39.48 b. $32.69 c. $25 d. $27

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