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Merkel Enterprises stock just paid an annual dividend of $3.32 per share. The firm increases its dividends by 5 percent annually. What is one share

Merkel Enterprises stock just paid an annual dividend of $3.32 per share. The firm increases its dividends by 5 percent annually. What is one share of this stock worth to you today if you require a 16 percent rate of return?

a. $31.69

b. $32.32

c. $33.82

d. $31.15

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