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Games R Us Inc. is expected to pay no dividends for the next six years. At the end of the sixth year it will pay

Games R Us Inc. is expected to pay no dividends for the next six years. At the end of the sixth year it will pay a dividend of $45 and cease operations. How much would you pay for the stock if you require a 10% rate of return?

A.

$16.93

B.

$25.40

C.

$22.58

D.

$28.22

E.

$19.76

F.

$14.11

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