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Company forecasts to pay a $16.2 dividend next year, which represents 55% of its earnings. This will provide investors with a 16% expected return (or

Company forecasts to pay a $16.2 dividend next year, which represents 55% of its earnings. This will provide investors with a 16% expected return (or cost of equity =r). The firm's current return on equity is 30%. What is the value of the stock?

$77.73

$141.33

$321.11

$648.00

$356.4

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