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Bavarian anticipates its revenues, and consequently its common stock dividends, will remain flat forever. It currently pays an annual dividend of $20 per year. If

Bavarian anticipates its revenues, and consequently its common stock dividends, will remain flat forever. It currently pays an annual dividend of $20 per year. If it pays the next dividend exactly one year from today, then what is the price of its common shares if the required rate of return is 100%?

Choices:

$20.00

$40.00

$200.00

$166.67

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