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Corp.'s common stock paid $2.50 in dividends last year (D0). Dividends are expected to grow at a 12percent annual rate forever. If LED's current market

Corp.'s common stock paid $2.50 in dividends last year

(D0).

Dividends are expected to grow at a

12percent

annual rate forever. If LED's current market price is $20.00, and your required rate of return is 13 percent, should you purchase the stock?

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