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LBM Company just paid a $1.23 annual dividend. You noticed that the firm paid an annual dividend of $0.91 nine years ago. You expect the
LBM Company just paid a $1.23 annual dividend. You noticed that the firm paid an annual dividend of $0.91 nine years ago. You expect the same growth rate to continue in the long run. If you require a return of 16 percent, how much are you willing to pay for one share of LBM stock?
a.) $10.10
b.) $9.77
c.) $10.50
d.) $9.80
e.) $9.50
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