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Dark Side of The Moon, Incorporated, just paid a dividend of $2.00 to its shareholders. Simultaneously, the company announced that future dividends will be increasing
Dark Side of The Moon, Incorporated, just paid a dividend of $2.00 to its shareholders. Simultaneously, the company announced that future dividends will be increasing by 4 percent per year forever. If you require a rate of return of 9.2 percent on Dark Side's stock, how much are you willing to pay today to purchase one share of the company's stock?
a. $41.99
b. $38.46
c. $40.00
d. $19.23
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