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Company M presently pays an annual dividend of $1.50 per share and it is expected that these annual dividend payments ($1.50 per share per year)
Company M presently pays an annual dividend of $1.50 per share and it is expected that these annual dividend payments ($1.50 per share per year) will continue indefinitely. If Company Ms equity cost of capital (r) is 15%, then the value of a share of Company Ms stock is closest to:
a.) $10
b.) $14
c.) $15
d.) $12.50
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