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Big D, Inc. just paid a dividend of 50 cents. The dividends are expected to grow 10% per year forever. If the discount rate is

Big D, Inc. just paid a dividend of 50 cents. The dividends are expected to grow 10% per year forever. If the discount rate is 15%, what is the price of Big D's stock at time zero?

a. $5.25

b. $0.525

c. $52.50

d. $50.

e. $11.00

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