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Grillsters Corporation has never paid a dividend, but expects to pay a dividend of $1.85 per share next year. The dividend is expected to grow
Grillsters Corporation has never paid a dividend, but expects to pay a dividend of $1.85 per share next year. The dividend is expected to grow at a 3 percent rate every year thereafter. Given the risk level of the stock, investors require a 13 percent return on this stock. What should be the market price of Grillsters' common stock? A. $15.66 B. $17.40 C. $18.50 D. $14.23 E. $16.06
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