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Company A traditionally pays an annual dividend equal to 50% of its earnings. Earnings this year are $50 million. The company has 20 million shares

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Company A traditionally pays an annual dividend equal to 50% of its earnings. Earnings this year are $50 million. The company has 20 million shares outstanding. Investors expect earnings to grow at a 5% annual rate in perpetuity, and they require a return of 12% on their shares. What is the stock's price today? $35.55$12.55$30.75$8.75$27.75

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