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BP recently cut it's dividend and now pays a $6.65 annual cash dividend ( D 0 ). Markets expect the dividend to remain at this

BP recently cut it's dividend and now pays a $6.65 annual cash dividend (D0). Markets expect the dividend to remain at this level for a very long time. No future dividend growth is anticipated.

The required rate of return by common stockholders (Ke) is 16 percent. What is the price of the common stock?

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