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Cardassia Corp. will pay a dividend of $2.00 per share on its stock for the next year. The dividends are expected to grow at a
Cardassia Corp. will pay a dividend of $2.00 per share on its stock for the next year. The dividends are expected to grow at a constant rate of 15% per year, indefinitely. If investors expect and require 10% annual return on this stock, the current stock price shall be ________.
-$44
-$40
$40
$44
None of the above.
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