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Excel Inc. is planning to pay a dividend of $2.80 in the next year and expects to grow the dividend at a constant rate of

Excel Inc. is planning to pay a dividend of $2.80 in the next year and expects to grow the dividend at a constant rate of 5% per year, indefinitely. If the required rate of return by shareholders is 11%, then the price of this stock should be ________.

A)$49.00

B)$51.80

C)$56.00

D)$42.04

E)none of the above

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