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Cielo Inc. has a current stock price of $50.00 and will pay a dividend in one year; its equity cost of capital is 15%. If
Cielo Inc. has a current stock price of $50.00 and will pay a dividend in one year; its equity cost of capital is 15%. If analysts expect Cielo stock to sell for $55.50 immediately after the firm pays the dividend in one year, what is the value of the dividend expected to be?
| $1.67 |
| $11.00 |
| $2.88 |
| $2.00 |
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