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IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 6% a year. The price of IBM is

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IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 6% a year. The price of IBM is $85 per share. What is IBM's cost of equity capital? A. 3.92% B. 5.22% C. 6% D. 13.06% What is the present value (PV) of an investment that pays $80,000 every year for four years if the interest rate is 7% APR, compounded quarterly? A. $350,797 B. $269,844 C. $323,812 D. $296,828

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